Intel Won't Rush Costly Chip Capacity Buildout Despite AI Boom, Even As Rivals TSMC And Samsung Spend Big Bucks: Here's Why

On Thursday, Intel Corp. (NASDAQ:INTC) said it volition not accelerate large spot capableness investments without clearer lawsuit commitments, adjacent arsenic rivals Taiwan Semiconductor Manufacturing Co. (NYSE:TSMC) and Samsung Electronics Co. (OTC:SSNLF) ramp up spending.

During the company's fourth-quarter net call, Intel struck a cautious code connected capableness expansion, pushing backmost against concerns that it could autumn down successful the intensifying AI-driven semiconductor arms race.

Asked whether delaying instrumentality orders could permission Intel exposed to longer pb times arsenic request accelerates, Intel CFO David Zinsner said the institution is already investing aggressively — but selectively.

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"We are aggressively getting tools connected Intel 7, Intel 3 and 18A," Zinsner said, adding that Intel plans to ramp wafer starts "as aggressively arsenic possible" connected those manufacturing nodes.

The restraint, Zinsner explained, applies chiefly to Intel 14A, a process node tied intimately to Intel Foundry Services and outer customers.

"What we’re holding backmost connected is 14A due to the fact that 14A is truly linked to foundry customers," Zinsner said. "It does not marque consciousness to physique retired important capableness determination until we cognize that we person customers that volition judge that demand."

The comments opposition with much assertive capableness enlargement strategies pursued by TSMC and Samsung, which person been rapidly securing instrumentality slots to conscionable anticipated AI spot demand.

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Intel besides said that it believes meaningful proviso gains tin beryllium achieved without large caller superior expenditures — a presumption that sets it isolated from its peers.

Zinsner said Intel's near-term absorption is connected improving manufacturing ratio crossed its existing footprint, including amended yields and shorter accumulation rhythm times.

"We deliberation we summation a batch of proviso conscionable by doing things amended with our existing tools," helium said, calling these opportunities "more unsocial to america close present than to different foundries."

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Intel reported fourth-quarter gross of $13.67 billion, topping Wall Street expectations of $13.37 billion, and delivered adjusted net of 15 cents per share, good up of analysts' forecasts for 8 cents, according to Benzinga Pro.