The “chip” war continues, in my opinion geo-politically driven, after years of centralizing production the world is now rebalancing. Is #Intel making the right bet?
This RizeClub conversation was triggered by the REUTERS article on Intel’s new investments (click here for the article) still intends to develop European chip manufacturing capacity despite the delayed plans being overshadowed by its announcement on Friday of a more than $20 billion investment in two new U.S. semiconductor plants.
“Time will tell, this might be a desperate attempt to take control of supply chain, the uncertainty of far east route and port closure due to different covid policy is almost too high to wait for clearance. If funds permit and market willing to accept increased prices, then why not. Localise supply!”
“Interesting to see how fast things change. A year ago they thought loud about outsourcing manufacturing as all the other chip producers. Now however with all the governments being ready to open their wallets for more localization, Intel would be silly to not open their hands. Possibly there might still also be a certain upside for their backwards integration with some of the smaller chips coming.
Curious if part of their financing will also include an IPO of mobileye, which was possibly their investment of the century.”
“Extra remarkable is Apple’s supply chain. They seem to have the chips ‘covered’ themselves”
“Hard to say… Tesla prices follow a roller coaster mode, in addition there is a big gap between a standard Model 3 and Model Y with Autonomous driving option (basically in that case they sell software so the contribution is really high) but for sure the contribution margin is much higer than “traditionnal car makers” (no advertisement, not car dealers network, no old asset to revamp and adpat to electrification…)”
“One of Intel’s key rivals is Taiwan Semiconductor Manufacturing Company (TSMC),the world’s most valuable semiconductor company. It operates 13 fabrication plants: nine in Taiwan,two in China and one in the US. TSMC currently only has one European outpost – a sales office in Amsterdam. However,the company is reportedly considering building its first European plant in Germany.”
“That would be a smart move, following Tesla’s Berlin factory, and supply chain localization on all continents! Are they publicly traded?”
“Not yet,TSMC is in early talks with the German government about potentially establishing a plant in the country. https://www.taipeitimes.com/News/biz/archives/2021/12/13/2003769478”
“Mobileye has by far the most advanced audio camera technology for self driving cars in the market and can be found in almost every car. Intel bought them in 2017 for 17bil and current valuation is around 50bil.”