Intel will invest 200 billion dollars in the production of chips

As component shortages are still at their peak, it becomes more and more important to find new ways for the industrial sector to meet the constant demands for equipment in the future.

Accordingly, Intel Foundry Services is investing up to $ 200 billion in the chip business. And this investment could be the necessary leverage to make the manufacturer a stronger competitor to TSMC and Samsung.

As we've discussed several times here, the component manufacturing segment was extremely important. Especially since the pandemic closed many factories last year and equipment orders soared due to isolation, teleworking and distance learning.

Thus, around the world and in different segments, the population felt the importance of investing even more in the component industry.

Intel will invest $ 200 billion in the chip market

Intel is serious about not only making its own chips, but also making them for other companies. One of the first to gain prominence was Qualcomm, for which Intel would be produce chips for Snapdragon SoC, as of 2024.

The American manufacturer has also joined forces to increasingly compete with TSMC and Samsung. In this sense, in accordance with last informationIntel Foundry Services, represented by CEO Pat Gelsinger, is investing an additional $ 200 billion in its chip business.

According to Arne Verheide, analyst at Seeking Alpha:

First of all, I would say that Intel Foundry Services (IFS) got off to a great start and got a big boost in a short period of time. If IFS is as successful as Intel's $ 200 billion manufacturing plan suggests, it could become a big new business (which currently has $ 0 billion in revenue).

Second, investors should be aware that IFS is only one element of Intel's strategy.

In other words, this new investment shows that the manufacturer is optimistic about the success of IFS. And, if proven successful, IFS could easily become Intel's third business beyond PCs and data centers. So, let's wait for the further development of this topic and analyze the results obtained from these investments in the medium and long term.