Intel Corporation (NASDAQ:INTC) is struggling to cope up with the expensive ways to shrink the circuitry on chips. It is opening new opportunities for the rivals to almost end the monopoly enjoyed by Intel in the server and PC markets.
The problems being faced by Intel in manufacturing the next generation chips is posing a challenge for the new successor. Following the resignation of Brian Krzanich last week, the company is on the search for a Chief Executive Officer. The resignation is on the backdrop of the discovery of Brian Krzanich’s relationship with a co-worker.
Missed Shipments of Next Generation Chips Under Brian Krzanich
Intel failed to ship large quantities of its next-generation chips under the leadership of Brian Krzanich. According to a release by the company, the production department is able to manufacture few working chips due to troubles in the process.
Taiwan Semiconductor Mfg. Co. Ltd. (NYSE:TSM) Expects to Ship New Chips in 2018 for Rivals
Taiwan Semiconductor Mfg. Co. Ltd. (NYSE:TSM) is making chips on tiny transistor chips comparable to that of the next generation chips being introduced by Intel, which has delayed the shipments to 2019.
The chip makers can make more dense chips using smaller chips. They also consume less power and occupy less space. According to the analysts, the competitors are able to create tiny chips with power saving capabilities and enhanced computing power to end the fifty-year monopoly of Intel. TSM is expected to revenues of 20% from next-generation chips in Q4 this year.
According to a person familiar with the situation, engineers at Intel are unhappy under the leadership of Brian Krzanich. The problems in production delayed the upgrade of manufacturing.
So far, Intel has commanded strong performance because of its competitive products. The company has the capability to improve the assembly and design techniques and optimize the manufacturing process. Intel is optimistic to maintain its leadership role in all areas by expanding the new opportunities.
Competitors of Intel
The rivals of Intel in the PC segment are IBM (NYSE:IBM), Advanced Micro Devices, Inc. (NASDAQ:AMD), and NVIDIA Corporation (NASDAQ:NVDA).
The main competitor to Intel in DEG microprocessor segment is Microchip Technology Inc. (NASDAQ:MCHP).