Wall Street Analyst Claims Intel Stands as the Sole Alternative to TSMC and Will Lead in Advanced Packaging

Wall Street Analyst Claims Intel Stands as the Sole Alternative to TSMC and Will Lead in Advanced Packaging

Please note that this article does not serve as investment advice, and the author has no current holdings in any of the stocks mentioned.

Intel’s 18A Process Nears Commercial Readiness

Intel is on the brink of a breakthrough with its next-generation 18A process, signaling a potential turnaround for the chip giant. Despite ongoing challenges, Wall Street remains optimistic, with one analyst reiterating a bullish stance on Intel’s stock.

Northland analyst Gus Richard recently reaffirmed an ‘Outperform’ rating along with a target price of $28 for Intel. His analysis emphasizes the company’s pivotal role in the semiconductor industry, indirectly labeling it as a critical competitor to TSMC.

Strategic Insights from Industry Analysts

In his note, Richard commented,

“Intel’s turnaround remains in doubt, but we believe INTC has a lot of technology and levers to execute its turnaround.”

Intel’s Expansion and Process Technology

Intel’s ongoing expansion at its manufacturing facilities, Fab 52 and Fab 62 in Chandler, Arizona, reflects its commitment to advancing manufacturing capabilities. Concurrently, TSMC is also establishing a dedicated facility in Phoenix, marking a significant investment in the American semiconductor landscape.

Notably, Intel’s 18A process is compatible with TSMC’s upcoming 2nm node technology, indicating a convergence of technological advancements that could reshape industry standards.

Future Directions: System-in-Package (SiP)

Richard speculates that Intel might pivot towards a System-in-Package (SiP) approach. This innovative technology integrates multiple integrated circuits and additional components into a single package, which could give Intel a competitive edge in advanced packaging.

Interestingly, Richard also draws a connection between geopolitical events and market dynamics. He suggests that the recent conflict in the Middle East could empower China to increase its influence over Taiwan, potentially enhancing Intel’s strategic importance in the global semiconductor market.

Performance Enhancements with 18A

As Intel moves forward, the 18A process is reported to deliver impressive technical advancements. During the 2025 Symposium on VLSI Technology and Circuits, Intel highlighted that the new technology would enable a 30% increase in density scaling compared to the current Intel 3 process. It also promises a 25% boost in frequency while reducing power consumption by 36% at the same operating frequency.

Moreover, Intel’s Products CEO, Michelle Johnston, announced during the BofA Global Technology Conference 2025 that the company will streamline its R&D efforts, focusing exclusively on products with a margin of at least 50%.This illustrates Intel’s strategic commitment to maximizing profitability in its operations.

For further details, you can refer to the original article here.

Related Articles:

New Outlook for Windows arriving in Microsoft 365 Education accounts in January 2024
Microsoft Releases KB5062324 to Resolve Windows 11 24H2 Update Blocker Issue

Leave a Reply

Your email address will not be published. Required fields are marked *