Intel (INTC) is bracing itself for the rising total addressable market (TAM) of automotive silicon, depicted by a significant increase in demand for semiconductors in the auto industry.
The chip giant plans to construct two leading-edge semiconductor industries facilities in Europe to meet the rising demand for chips.
Intel is a multinational technology company that designs, manufactures, and distributes computer circuits. Its products are used to power data centers, smartphones, and connected devices.
Additionally, Intel plans to invest €80 billion over the next decade as part of its push for opportunities in the European market. The company also plans to establish foundry capacity in Ireland, as well as launch Intel Foundry Service Accelerator. (See Intel stock charts on TipRanks)
The push is part of Intel’s plan to ensure its chips for the European market are developed using advanced process technologies. The company has already patterned with leading automotive players, and has committed significant resources to enhance the transition from legacy process technologies.
In addition, Intel has established a new design team dedicated to the European market. It also plans to offer custom and industry-standard intellectual property to support customers’ unique needs within the region’s auto industry.
What’s more, Intel Foundry Services has opened discussions with customers in Europe, targeting automotive companies and suppliers.
In August, Mizuho Securities analyst Vijay Rakesh reiterated a Buy rating on Intel with a $70 price target, implying 30.48% upside potential to current levels.
Consensus among analysts is a Hold, based on nine Buys, nine Holds, and seven Sells The average Intel price target of $61.29 implies 14.24% upside potential to current levels.
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