By Stephen Nellis
(Reuters) – Intel Corp (NASDAQ:) executives have raised the opportunity of licensing chipmaking know-how from exterior companies, a transfer that would see it exchanging manufacturing secrets and techniques with rival Taiwan Semiconductor Manufacturing Co Ltd (TSMC) or Samsung Electronics (OTC:) Co Ltd.
Intel is among the few remaining semiconductor companies that each designs and manufactures its personal chips, however the enterprise mannequin has come into query in recent times as the corporate misplaced its manufacturing result in the Taiwanese and Korean firms.
One possibility urged by some traders can be to outsource manufacturing. The corporate mentioned, nonetheless, on Thursday that whereas it plans to extend its use of out of doors factories, the vast majority of its 2023 merchandise can be made internally.
However licensing know-how might assist Intel keep away from main investments in rivals’ factories that outsourcing offers would probably entail.
“Broadly talking, which will imply sharing applied sciences that we’ve got that they may use or leveraging applied sciences that others have developed that we will use as nicely,” outgoing Chief Government Bob Swan informed an earnings name.
That mentioned, questions stay over how a lot a licensing deal would price and whether or not a rival agency would even have an interest.
Intel didn’t identify firms it would license from however TSMC and Samsung (KS:) are its solely opponents for high-end chips.
“It appears slightly bizarre to me that TSMC would disclose to the keys to the kindgom except there is a sizeable fee that went with it,” mentioned Stacy Rasgon, an analyst with Bernstein.
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