Actions of semiconductor Broadcom (Nasdaq: Avgo) fell today after being reported that the company tests IntelThe manufacturing flea manufacturing process. Broadcom designs his chips, but does not make them. Most business processors are currently manufactured by Manufacture of Taiwan semiconductors (TSMC).
Broadcom investors obviously do not like the idea that the company potentially uses Intel as a manufacturer and sent the title of 4.2% today. Broadcom’s actions fell 2.2% to 11:25 a.m. HE.
It is not uncommon for flea designers to occasionally perform tests with flea manufacturers to see if their process could be beneficial. But the Broadcom test on Intel 18A process has attracted the attention of investors, probably because Intel has struggled to take off its specific advanced processing production.
Intel has delayed its potential manufacturing contracts for its 18A process until 2026, and recent Reuters reports show that the calendar has been postponed to an additional six months.
The 18a process is to make advanced artificial intelligence (AI) Chips, which is the bread and butter of the manufacture of semiconductor taiwan. Broadcom investors may fear that if the company moves part of its manufacture of fleas to Intel, it could slow down production or delay the publication of new processors.
None of the two companies has comments on a partnership or new offers, and no official contract has been announced. This means that Broadcom investors should adopt an expected approach to this news and make no investment decision based on preliminary tests.
Even if the company decided to move part of its manufacture of chips to Intel, it is unlikely that it will make a drastic transition at a time when Intel always tries to find its sole in the middle of slowing down production. Broadcom most likely tries to determine the manufacturing options it has and how the Intel 18A process has developed.
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