JasonDoiy
Investment Thesis
It is clear Pat Gelsinger is driving – reinstating – a culture of excellence at Intel (NASDAQ:INTC) across the organization. He just introduced the second phase of the IDM 2.0 model: the creation of an internal foundry
Intel Introduces Internal Foundry Model
Summary
- A few months after introducing the novel, innovative (although questionable) semiconductor co-financing program, Intel is at it again.
- This time, Intel has introduced the “internal foundry model” as the next phase of its IDM 2.0 strategy.
- This means Intel’s design teams will become the customers of its own fabs, on equal footing to its actual foundry customers.
- Besides these financial engineering gimmicks, what ultimately matters is if Intel remains on track to its roadmap, which luckily it is.
- Nevertheless, splitting off of the design and manufacturing groups behind an Iron Curtain does open the alluring possibility of consecutively spinning off the fabs (or the design teams).
With an engineering background, looking for companies with expertise to be well-positioned for growth and leadership.
Analyst’s Disclosure:I/we have a beneficial long position in the shares of INTC either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.