Intel Crisis Puts Foundry Strategy Under Maximum Pressure

Intel faces a decisive moment for its foundry strategy after recording the largest monthly stock decline in its history. Shares fell 45% in October, pressured by an adverse scenario in the personal computer market. The company is still struggling to compete with TSMC in the manufacturing of advanced chips.

The company has invested billions of dollars over the last five years to expand its manufacturing capacity. Despite this, Intel has yet to secure major external clients for its cutting-edge technology. Most of its current production is geared toward the manufacturer's own internal consumption.

Recent financial performance was impacted by weak demand for PCs. Intel projected quarterly revenue between 1 billion and 2 billion dollars below analyst estimates. The high cost of components such as memory and substrates has limited global sales.

To meet growth in the data center sector, the company had to readjust its production priorities. Intel is diverting capacity from its advanced chip factories to produce older technologies. This maneuver aims to supply the demand for server processors, which grew 78% in the third quarter.

CEO Lip-Bu Tan is trying to balance supply shortages with the need to attract new partners. The shift in industrial plant usage may hinder the adoption of 18A technology by external clients. Investor confidence now depends on the company's ability to deliver concrete results in its foundry division.