Latest news with #chipmanufacturing
Forbes
3 hours ago
- Business
- Forbes
The 2nm Race: Intel's 18A Faces Uphill Task Against TSMC
CANADA - 2025/05/26: In this photo illustration, the Intel Corporation logo is seen displayed on a ... More smartphone screen. (Photo Illustration by Thomas Fuller/SOPA Images/LightRocket via Getty Images) Intel (NASDAQ:INTC) has been fully committed to transforming itself into a global foundry leader, especially as the competition for next-generation 2-nanometer (nm) chips intensifies with its 18A process at the heart of its strategy. Over the last four years, the company has poured more than $90 billion into capital expenditures aimed at expanding its foundry operations and narrowing the gap with TSMC and Samsung. The stakes are considerable. The foundry segment suffered losses of nearly $13 billion last year, and Intel's shares have decreased by nearly 50% since their peak in 2024. So, how does Intel's new technology compare with that of its rivals? In the realm of chip manufacturing, 'nm' indicates the size of the process node in nanometers. Generally, smaller nodes allow for an increased number of transistors to be integrated into a designated area, leading to enhanced performance, improved energy efficiency, and the ability to accommodate more intricate designs. This is particularly crucial for high-performance applications such as AI, smartphones, and advanced server tasks. However, transitioning to smaller nodes is a costly and complicated endeavor. Initial yield rates are often lower, and the investment required to construct and equip fabrication facilities for such advanced production is substantial. Intel is optimistic that its new 18A process, which employs 1.8nm technology, is presently in risk production. Here, initial batches are utilized to evaluate and enhance the manufacturing process before mass production begins. Laptops utilizing 18A-based processors are already being sampled with original equipment manufacturers (OEMs). This process creates chips employing technologies like RibbonFET gate-all-around transistors and PowerVia backside power delivery. These innovations permit the creation of smaller transistors that enhance performance and energy efficiency. PowerVia could provide significant benefits for AI applications as well as high-performance computing tasks. The rollout of Intel's 18A is occurring just as its competitors are gaining momentum. TSMC, the leading player in the foundry market, commands over two-thirds of the overall foundry space and is expected to retain its lead in the 2nm generation by a considerable margin. TSMC plans to commence mass production of its 2nm process in the latter half of 2025 at its fabrication facilities in Taiwan. TSMC's 2nm process represents its first incorporation of gate-all-around (GAA) transistor architecture, which promises a 10% to 15% enhancement in performance and up to 30% reduction in power usage in comparison to its 3nm node. Furthermore, TSMC has demonstrated exceptional manufacturing prowess. As reported by the Taiwan Economic Daily, current yields for the 2nm process are at 60%, indicating that out of every 100 dies sliced from a silicon wafer, 60 meet quality control standards. That's a remarkable statistic. Some reports from March estimated that Intel was only achieving yields of between 20% to 30% on its 18A process, while Samsung was reportedly achieving 40% yields on its rivaling technology. TSMC's customer base is also extensive and loyal, featuring major clients like Apple and AMD that have already committed to utilizing its 2nm process. Even Intel is diversifying its strategy, engaging TSMC as an alternative source for some of its forthcoming Nova Lake desktop processors, anticipated in 2026. Counterpoint Research projects that TSMC may achieve full utilization of its 2nm capacity by the fourth quarter of 2025. Now, Intel asserts that the 18A process will provide improved performance and reduced power usage compared to TSMC's competing node. Nonetheless, TSMC's chips are likely to maintain an edge in terms of density and cost. Compounding Intel's difficulties, the company has experienced ongoing delays in introducing new nodes, and its 18A process has already witnessed some external clients withdraw after initial trial production, resulting in demand that fell short of expectations. Meanwhile, TSMC possesses the scale, ecosystem, and a broad array of loyal customers who are ready to embrace its 2nm technology, potentially complicating matters for Intel. Not only has Intel's stock performed poorly, but its annual returns have also been significantly more volatile than those of the S&P 500. The stock's returns were 6% in 2021, -47% in 2022, 95% in 2023, and -60% in 2024. In contrast, Trefis High Quality (HQ) Portfolio, which includes 30 stocks, shows much lower volatility. It has significantly outperformed the S&P 500 over the past 4 years. What accounts for this? As a collective, HQ Portfolio stocks have delivered better returns with reduced risk compared to the benchmark index; a more stable experience, as reflected in HQ Portfolio performance metrics.
Yahoo
20 hours ago
- Business
- Yahoo
ASML Holding Rises 10% YTD: Is the Stock Worth a Good Buy?
ASML Holding ASML has delivered a solid year-to-date (YTD) gain of 10%. This performance easily beats the broader Zacks Computer and Technology sector, which rose a mere 1.5% in the same period. ASML Holding stock has also moved ahead of several semiconductor peers, including NVIDIA Corporation NVDA, Intel Corporation INTC and Advanced Micro Devices, Inc. AMD. YTD, shares of NVIDIA, Intel and Advanced Micro Devices have risen 8.1%, 7.1% and 5%, respectively. This outperformance shows investors are increasingly confident in ASML Holding's long-term story, even during a volatile market shaped by trade conflicts and geopolitical risks. We believe this momentum is grounded in strong fundamentals, and ASML's long-term outlook justifies a buy position for now. Image Source: Zacks Investment Research ASML's dominance in the semiconductor manufacturing sector is unchallenged. The company maintains a near-monopoly on extreme ultraviolet (EUV) lithography, which is essential for producing advanced chips at 3nm and below. Its EUV systems are crucial for leading chipmakers such as TSMC, Samsung and Intel, positioning ASML as a key enabler of cutting-edge semiconductor manufacturing. ASML Holding's High-NA EUV technology represents the next frontier in chip manufacturing. Designed for sub-2nm nodes, these advanced systems will be critical for the industry's future. While the adoption of High-NA EUV has been slower than expected, the long-term potential remains enormous. As chipmakers ramp up production of smaller, more powerful chips, ASML's High-NA EUV tools will play a pivotal role, driving sustained demand. The company's technological superiority ensures high barriers to entry, giving it a competitive moat. With EUV technology being essential for advanced semiconductor fabrication, ASML Holding's dominance remains intact, supporting its long-term growth outlook. ASML Holding is well-positioned to capitalize on the artificial intelligence (AI) revolution, which is driving massive demand for advanced semiconductors. With AI workloads requiring cutting-edge GPUs, high-bandwidth memory and AI accelerators, the demand for smaller and more powerful chips is rising. This trend plays directly into ASML's hands, as its EUV and High-NA EUV machines are vital for manufacturing these advanced chips. As cloud providers, data centers and tech giants expand their AI infrastructure, ASML Holding's lithography tools will be in greater demand. This AI-driven semiconductor expansion ensures long-term growth tailwinds for ASML, making it a compelling buy. ASML Holding's first-quarter 2025 financial results demonstrated its resilience amid the ongoing macroeconomic uncertainties. The company posted €7.74 billion in net sales, marking a 46% year-over-year increase. Net income surged 92% to €2.36 billion, while earnings per share (EPS) grew 93% to €6.00, highlighting ASML's operational efficiency. ASML Holding N.V. price-consensus-eps-surprise-chart | ASML Holding N.V. Quote The gross margin expanded 300 basis points year over year to 54%, driven by strong cost management and improved productivity in its advanced lithography systems. This margin expansion reflects ASML's ability to maintain profitability, even in a challenging macro environment. ASML Holding's 2025 guidance also signals confidence in its future growth. The company expects 15% revenue growth for the year, driven by the rising demand for both EUV and DUV (deep ultraviolet) lithography systems. Additionally, ASML forecasts a 70-basis-point margin expansion in 2025, indicating higher profitability ahead. ASML stock currently trades in line with the sector. Its forward 12-month price-to-earnings (P/E) ratio of 26.37 almost matches the sector's average of 26.28. Image Source: Zacks Investment Research However, ASML Holding trades at lower P/E multiples compared with other semiconductor players, including Intel, NVIDIA and Advanced Micro Devices. Currently, Intel, NVIDIA and Advanced Micro Devices trade at P/E multiples of 41.68X, 30.57X and 26.75X, respectively. ASML's leadership in EUV technology, strong finances and role in powering future chipmaking keep it well-positioned for growth. With AI, high-bandwidth memory and advanced chips driving demand, ASML's tools will remain essential. The stock looks worth buying for long-term investors. ASML carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Intel Corporation (INTC) : Free Stock Analysis Report Advanced Micro Devices, Inc. (AMD) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report ASML Holding N.V. (ASML) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Connectez-vous pour accéder à votre portefeuille
CNA
2 days ago
- Business
- CNA
Texas Instruments plans to invest over $60 billion in US to make foundational chips
Texas Instruments said on Wednesday it would invest more than $60 billion across seven U.S. semiconductor fabs, marking the largest investment in foundational chip manufacturing in American history.
Reuters
2 days ago
- Business
- Reuters
Texas Instruments plans to invest over $60 billion in US to make foundational chips
June 18 (Reuters) - Texas Instruments (TXN.O), opens new tab said on Wednesday it would invest more than $60 billion across seven U.S. semiconductor fabs, marking the largest investment in foundational chip manufacturing in American history.
Bloomberg
4 days ago
- Business
- Bloomberg
Trump Tax Bill to Boost Biden's Semiconductor Tax Credit to 30%
The Senate's draft tax bill calls for temporarily increasing an investment credit for semiconductor manufacturers, enhancing a subsidy for chipmakers to build factories in the US. The measure would increase the size of the tax credit to 30% of investments in plants, up from 25%, giving chipmakers further incentive to spend on new facilities before the tax break expires at the end of 2026.
