Yahoo Finance Intel (INTC) to Develop Semiconductor Facility in Poland
Intel Corporation INTC has announced that it will develop a state-of-the-art semiconductor assembly and test facility near Wroclaw, Poland, to cater to the increased demand for advanced semiconductor solutions. With an anticipated investment of about $4.6 billion, the facility is likely to spur local economic development by generating thousands of jobs.
A strong talent base, solid infrastructure set up and healthy business environment tilted the scales in favor of Poland as the preferred choice for the new semiconductor facility. It is likely to work in unison with its existing wafer fabrication facility in Leixlip, Ireland and its planned wafer fabrication facility in Magdeburg, Germany, to help create a first-of-its-kind end-to-end leading-edge semiconductor manufacturing value chain in Europe.
The facility, set to be built per green building principles to minimize carbon footprint, will receive silicon wafers from wafer fabrication facilities. It will then cut them into individual chips, assemble them into final products and test them for performance and quality before shipping them to customers. It will also assemble individual chips into final products and will likely serve as a catalyst for additional investments and innovation in Poland and across the European Union to further develop the semiconductor ecosystem.
Intel has been lately facing dwindling overall sales largely due to PC inventory correction and contraction in the server market. Revenues declined significantly in first-quarter 2023 owing to a challenging macroeconomic environment, uncertain business conditions and softening demand trends. Softness in the end consumer and educational market demand is likely to remain an overhang on the company’s performance.
Consequently, top management has embarked on a massive investment roadmap by developing new manufacturing hubs and improving its operating technology to bring the company back to its growth trajectory.
Intel is betting big on the IoT business and is investing heavily to gain a higher market presence. While the focus was earlier on making the best computing chips and generating industry-leading margins from them, the company now prefers to focus on a product range targeting different market segments. Management believes that although the higher-end businesses in more developed economies continue to look up, the new strategy should help it get into many more device categories, where Intel products will likely continue to enjoy a premium based on performance.
The stock has lost 3.1% over the past year against the industry’s growth of 95.8%.
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Intel currently carries a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Key Picks
InterDigital, Inc. IDCC, sporting a Zacks Rank #1, delivered an earnings surprise of 170.89%, on average, in the trailing four quarters. In the last reported quarter, it pulled off an earnings surprise of 579.03%. It has a long-term earnings growth expectation of 13.9%.
It is a pioneer in advanced mobile technologies that enables wireless communications and capabilities. The company engages in designing and developing a wide range of advanced technology solutions, which are used in digital cellular and wireless 3G, 4G and IEEE 802-related products and networks.
Akamai Technologies, Inc. AKAM, carrying a Zacks Rank #2 (Buy), delivered an earnings surprise of 4.9%, on average, in the trailing four quarters. It has a long-term earnings growth expectation of 10%.
Akamai is a global provider of a content delivery network and cloud infrastructure services. The company’s solutions accelerate and improve the delivery of content over the Internet, enabling faster response to requests for web pages, streaming of video & audio, business applications, etc. Akamai’s offerings are intended to reduce the impact of traffic congestion, bandwidth constraints and capacity limitations on customers.
Turtle Beach Corporation HEAR, carrying a Zacks Rank #2, is another key pick. It develops, commercializes and markets gaming headset solutions for various platforms, including video game and entertainment consoles, handheld consoles, personal computers, tablets, and mobile devices under the Turtle Beach brand.
Turtle Beach is well positioned to benefit from quality products and enjoys a solid foothold in its served markets. Its headsets are suited for learning and working remotely via video or audio conferencing. It has a long-term earnings growth expectation of 16%.
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