Intel, on late Thursday evening, reported that the development of a next-generation chip-making process might delay by six months to one year. With this announcement, the leading chipmaker, Intel, is falling behind among its other counterparts in the market to build better computer chips.
The Silicon Valley pioneer might be forced to take help from other chip manufacturers as it fails to cope up with the new technological advancements. In other words, the company meant that the Intel’s 7-nanometer processors would not be made until the late 2022 or early 2023. It paves the right way for other manufacturers to take the lead and make a leap ahead.
After the announcement, the share price of Intel fell around 16% on Friday, and the sharp plunge wiped out around $41 billion of the shareholders’ wealth. The fall also affected the Dow Jones industrial average, which is the market measurer of top 30 bellwether companies including Intel.
Intel is one of the best chip manufacturing company and not long ago, it was way ahead than other technological counterparts, and nobody would have thought that this chip manufacturing pioneer would outsource the services of other firms.
The next-generation chip technology, which Intel is working on, is already being supplied by a significant Taiwan supplier, TSMC. On Friday, TSMCs’ share surged more than 10% and closed at $73.90 in US trading.
The company recently got a shock when Apple Inc. said that it would soon start using their own chips to power its computers instead of Intel’s Share.
Although the stock market is on a long term uptrend, the share price of Intel was at their all-time high almost 20 years ago at $75.81. On Friday, Intel closed its day at $50.59. The Santa Clara, California based company is encountering a continuous downfall. The company is operating in profits still, but the firm was at another level in the era of personal computers. Since the shift from PCs to mobile devices, which came after the release of game-changing iPhone, Intel seems to be struggling to adapt.