Taiwanese Chipmaker UMC Teams Up With Intel To Boost Chip Production In US
Portfolio Pulse from Benzinga Neuro
Taiwanese chipmaker United Microelectronics Corp. (NYSE:UMC) and Intel (NASDAQ:INTC) have announced a partnership to develop 12-nanometer chip technology for production in Intel's Arizona facilities, starting in 2027. This collaboration aims to enhance UMC's U.S. production capabilities and allow Intel to focus on more advanced chip technologies by leveraging UMC's expertise in mature chip production. The partnership is seen as a strategic move to compete against TSMC and Samsung in the contract manufacturing space.
April 02, 2024 | 11:17 am
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Intel's collaboration with UMC to develop 12-nanometer chip technology in the U.S. allows it to focus resources on cutting-edge technologies, such as 1.4-nm chips, by leveraging UMC's expertise in mature chip production.
By partnering with UMC, Intel can allocate more resources towards developing cutting-edge chip technologies while still competing in the market for mature chips. This strategic move is expected to strengthen Intel's position in the semiconductor industry and could positively influence its stock price in the short term.
CONFIDENCE 85
IMPORTANCE 75
RELEVANCE 90
POSITIVE IMPACT
UMC's partnership with Intel to develop 12-nanometer chip technology and boost U.S. production capabilities is expected to expand its North American customer base and enhance its product offerings.
The partnership with Intel allows UMC to leverage its mature chip production capabilities while expanding into the North American market, which is currently less than 30% of its revenue. This strategic move is likely to enhance UMC's competitiveness and attractiveness to investors, potentially leading to a positive short-term impact on its stock price.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 90