Intel leaves the possibility of licensing agreements hanging around, but would TSMC and Samsung be interested?

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In this news, we discuss the Intel leaves the possibility of licensing agreements hanging around, but would TSMC and Samsung be interested?

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(Reuters) – Executives at Intel Corp. raised the possibility of licensing the chip-making technology to outside companies, a move that could see it trading trade secrets with Taiwan Semiconductor Manufacturing Co Ltd (TSMC) or Samsung Electronics Co Ltd.

Intel is one of the few remaining semiconductor companies to design and manufacture its own chips, but the business model has been called into question in recent years as the company lost its manufacturing lead to Taiwanese and Korean companies. .

One option advocated by some investors would be to outsource manufacturing. The company, however, said on Thursday that while it plans to increase its use of outdoor factories, the majority of its 2023 products will be made in-house.

But the licensing technology could help Intel avoid major investments in competitor factories that outsourcing deals would likely involve.

“Generally speaking, that can mean sharing the technologies we have that they could use or exploit technologies that others have developed that we can also use,” said outgoing CEO Bob Swan on a call. to the results.

That said, questions remain about the cost of a licensing deal and whether a rival company would even be interested.

Intel hasn’t named any companies it could license from, but TSMC and Samsung are its only competitors for high-end chips.

“It seems a little strange to me that TSMC is handing over the keys to kindgom unless there is a large payment to go with it,” said Stacy Rasgon, analyst at Bernstein.

Reporting by Stephen Nellis in San Francisco; Editing by Peter Henderson and Edwina Gibbs

Original © Thomson Reuters

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