Technological Breakthrough: What’s Behind the Rise in Intel Stock

Intel is now in the midst of a painful downsizing process as part of the organizational change process it has been going through for three years, the ultimate goal of which is to become a company that produces chips for competing companies. As part of the process, more than 15% of the devices in the organization will be cut, Intel will try to save about 10 billion dollars in expenses and at the same time, liquid assets such as shares in Mobilyay and Altara will be realized. Intel’s stock rose by about 3.3% in the last week, and the opening of trading on Nasdaq increases the stock by about 3% more.

However, even in this difficult period, Intel received some news indicating its ability to become an organization that manufactures with advanced technologies below 5 nm, and for the first time to challenge the competitor Taiwan Semiconductor (TSMC) in areas below 2 nm. The Biden administration, which during the president’s term promoted the chip law and a series of grants to companies that will open chip manufacturing plants on US soil, has in recent days led to a new agreement between Intel and the American military industry, which may somewhat improve Intel’s financial back in the coming years and guarantee it Billion dollar orders.

The Bloomberg website reported over the weekend that Intel signed an agreement with the Pentagon that allows it to purchase chips worth up to $3.5 billion as part of a new program dubbed the Secure Enclave, which aims to promote the production of advanced chips for the defense and intelligence sector in American factories.

This agreement is added to the grants that Intel previously received under the chip law in the amount of 8.5 billion dollars and government loans in the amount of 11 billion dollars. Intel is currently expanding its production lines in the US in Arizona, and is building a new factory in Ohio. In addition, it has several factories in Oregon.

The company accumulated orders of 15 billion dollars by the end of the decade

As part of the Pentagon’s requirements, Intel builds its clean rooms – those large manufacturing spaces required to produce silicon wafers – as isolated rooms dedicated to defense customers only. Intel is also the only chip manufacturer in the US that manufactures processors on its own below 30 nm geometry. By comparison, Global Foundries – an American company owned by the Emirati Mubadala Foundation – produces non-advanced components and has given up on entering the market for Intel and TSMC. On the development of production lines for chips with 1.8 nm technology (18 angstroms) which is expected to go into production next year.

In recent weeks, Intel has announced several achievements on the way to launching the new production lines next year, including the launch of a development and design package for external customers, so that they can design chips adapted to Intel’s technology, as well as a dramatic decrease in the density of defects on the production lines – which indicates A healthy process towards mass production. The company announced that 12 manufacturing customers are in active talks to adopt 18A technology, and eight designs from outside companies are expected to enter production by mid-2025.

Bloomberg recently revealed that Intel CEO Pat Gelsinger stated in closed calls that the company had accumulated orders of $15 billion by the end of the decade.