Intel’s Foundry Push Faces Test After 45% October Stock Plunge

According to CNBC, Intel shares plunged 45% in October, their steepest monthly decline on record, as the company’s foundry business faced pressure to attract outside customers. Intel said quarterly revenue would be $1 billion to $2 billion below analysts’ estimates, citing continued weakness in the PC market. The company is also shifting some Oregon factory capacity from its advanced 18A chips to the older Intel 3 node to address supply constraints, a move that could complicate its efforts to win customers for 18A. Harvard Business School professor David Yoffie said prospective customers may question Intel’s credibility as a supplier if it lacks capacity beyond its own needs, and warned that the company’s economics would face greater strain if it fails to secure a large-scale foundry customer within a year. Intel CEO Lip-Bu Tan said the company expects to announce a couple of customers in the coming two quarters.