What’s Going on with Intel?
Intel (INTC) announced in a press release this morning, Aug. 23, that the company has been awarded an agreement by the U.S. Department of Defense “to provide commercial foundry services in the first phase of its [the U.S. government] multi-phase Rapid Assured Microelectronics Prototypes - Commercial (RAMP-C) program."
Pre-market today, INTC stock rose 0.63%, hovering around $52.34 per share.
What Does This Mean for INTC?
Intel recently publicized its intentions to “become a major provider of U.S.-based capacity for foundry customers, including an investment of approximately $20 billion to build two new factories in Arizona.”
According to Intel CEO Pat Gelsinger, “One of the most profound lessons of the past year is the strategic importance of semiconductors, and the value to the United States of having a strong domestic semiconductor industry. Intel is the sole American company both designing and manufacturing logic semiconductors at the leading edge of technology."
Intel's new agreement with the U.S. Department of Defense will see Intel Foundry Services partner with industry leaders like IBM to help the government design and manufacture “assured integrated circuits by establishing and demonstrating a semiconductor IP ecosystem to develop and fabricate test chips on Intel 18A,” which is Intel’s most advanced process technology to date.
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Intel is the world's largest chipmaker. It designs and manufactures microprocessors for the global personal computer and data center markets. Intel pioneered the x86 architecture for microprocessors. It was the prime proponent of Moore's law for advances in semiconductor manufacturing, though the firm has recently faced manufacturing delays. While Intel's server processor business has benefited from the shift to the cloud, the firm has also been expanding into new adjacencies as the personal computer market has stagnated. These include areas such as the Internet of Things, artificial intelligence, and automotive. Intel has been active on the merger and acquisitions front, acquiring Altera, Mobileye, and Habana Labs in order to bolster these efforts in non-PC arenas.