shares The semiconductor company Broadcom (NASDAQ: AVGO) They were retreating today after reporting that the company was testing it IntelManufacturing chip process. Broadcom designs its chips, but does not design them. Most of the company’s treatments are currently made Taiwan manufacturing semiconductors (TSMC).
It is clear that Broadcom Investors do not like the idea of the company that is likely to use Intel as a manufacturer, and sent shares by up to 4.2 % today. Broadcom shares decreased by 2.2 % from 11:25 am Each time.
It is not uncommon for chip designers to take tests from time to time with chips manufacturers to see if their process may be useful. But the BROADCOL test for the Intel 18A process caught the attention of investors, most likely because Intel has struggled to obtain its own advanced processing production.
Intel delayed potential manufacturing contracts for the 18A process until 2026, and recent reports from Reuters show that the schedule has been paid for an additional six months.
The 18A process is to make the applicant artificial intelligence (AI) chips, which are bread and butter of semiconductors in Taiwan. Broadcom’s investors may be anxious that if the company moves some of the chips to Intel, this may slow production or delay the issuance of new processors.
None of the company made comments about new partnership or deals, and no official contracts have been announced. This means that Broadcom investors should follow the waiting and vision approach to this news and not to make any investment decisions based on the initial tests.
Even if the company decides to transfer some of its manufacture to Intel, it is unlikely to make a fundamental transition at a time when Intel is still trying to find its feet amid slowing production. Broadcom is likely trying to know the manufacturing options that are available and the development of the Intel 18A process.
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