Semiconductor giant Intel (NASDAQ:INTC) is teaming up with Taiwan’s United Microelectronics (NYSE:UMC) to develop a 12-nanometer semiconductor process platform. The foundry collaboration will target high-growth markets, including mobile, communication infrastructure, and networking.
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This long-term deal brings together Intel’s manufacturing scale and UMC’s foundry expertise in mature nodes. The collaboration will also mean more choices for the company’s customers in their sourcing priorities.
Notably, the partnership is part of Intel’s aim to make Intel Foundry Services (IFS) the second-largest foundry by the end of this decade. For UMC, the deal is an enabler towards cost-efficient capacity expansion and technology node advancement. The new process node will be developed and produced at Intel’s Fabs 12, 22, and 32 in Arizona. Further, production of the 12-nanometer process is anticipated to begin in 2027.
Separately, Intel’s fourth-quarter results are awaited after market close today. Analysts expect the company to post an EPS of $0.45 on revenue of $15.16 billion for the quarter. UMC’s fourth-quarter numbers are also coming up on January 31. Wall Street expects UMC to post an EPS of $0.15 on revenue of $1.72 billion for the quarter. In the comparable year-ago period, UMC’s EPS of $0.25 had lagged expectations by $0.01.
What is the Target Price for Intel?
Overall, the Street has a Hold consensus rating on Intel. Following a nearly 65% jump in the company’s share price over the past year, the average INTC price target of $46.19 implies a potential downside of 6.5% in the stock.
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