Posted 1/8/2024, 11:45:00 AM
Intel Sells AI Business Stake to Fund Costly Bid to Regain Chipmaking Lead from TSMC
- Intel is selling a stake in its AI software business, Articul8 AI, to raise cash for its goal of retaking the semiconductor manufacturing crown from TSMC
- Intel has been selling off non-core assets like Mobileye and its FPGA business to generate liquidity to invest in advanced chipmaking equipment
- Intel sees an opportunity to position itself as an alternative chip manufacturer to TSMC, which poses supply chain risks given geopolitical tensions around Taiwan
- But catching up to TSMC will be very expensive, requiring huge capital expenditures on advanced ASML lithography machines
- While these Intel asset sales provide cash to fund its ambitions, execution risks remain high given the complexity of next-gen chipmaking