Intel shares fall as TSMC offers an alternative for packaging customers
TSMC CEO C.C. Wei said on October 15 that TSMC would help customers unable to obtain Intel’s EMIB-T packaging capacity. Intel shares closed at $89.85 on October 16, down 5.79%, amid a broader chip-sector decline, after earlier reports described a 3.9% drop to $91.61. Intel’s Q2 Foundry business posted $5.765B of revenue and a $2.089 billion operating loss, highlighting the business under competitive pressure.
Why it matters
TSMC’s offer gives Intel Foundry customers another advanced-packaging option and could pressure pricing and margins for Intel’s packaging expansion. Intel CFO David Zinsner said packaging revenue should begin ramping in the back half of 2027 at around a 40% gross margin and 30% operating margin, but Intel has not disclosed a packaging customer.
Key facts
- 1TSMC CEO C.C. Wei indicated on October 15 that TSMC would support customers unable to secure Intel’s EMIB-T packaging capacity. finance.yahoo.com
- 2Intel closed at $89.85 on October 16, down 5.79%. finance.yahoo.com
- 3Intel’s Q2 Foundry revenue was $5.765B, alongside a $2.089 billion operating loss. finance.yahoo.com
- 4Intel CFO David Zinsner said packaging revenue should start ramping in the back half of 2027, with around a 40% gross margin and 30% operating margin. finance.yahoo.com
Open questions
- Materials report different price-move snapshots: a 3.9% decline to $91.61 in versus a 5.79% decline to $89.85 on October 16 in; they do not establish whether these refer to different trading sessions or reporting snapshots.
Summary written by AlphAI AI Desk from 3 of 3 sources. Not investment advice. Figures are as stated by the linked sources.