Semiconductor giant Intel (NASDAQ:INTC) is joining hands with Japan’s NTT on the development of next-generation semiconductors, according to NikkeiAsia. The semiconductors are expected to substantially lower power usage by incorporating optical technology.
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The R&D cooperation effort will also include other companies such as SK Hynix. Additionally, the Japanese government will provide support to the tune of $305 million. As global chip demand rises and the shrinking size of semiconductors nears physical limits, optical technology is seen as the next frontier in making processing faster.
The collaborators aim to set up production technology by Fiscal 2027. For Intel, this development follows its recent foundry collaboration with Taiwan’s United Microelectronics (NYSE:UMC) to develop a 12-nanometer semiconductor process platform.
What Is the Prediction for Intel Stock?
Intel shares have tanked by nearly 10% over the past five sessions after the company’s financial outlook failed to impress investors. Overall, the Street has a Hold consensus rating on Intel, and the average INTC price target of $46.42 points to a modest 5.9% potential upside in the stock.
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