Asia chip windfall preludes tech’s next challenge

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Asia chip windfall preludes tech’s next challenge
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Shares of TSMC and Samsung have leapt on hopes Intel may outsource production. It could enlarge the contract-chipmaking market they dominate by 20%. Still, $209 billion Intel’s woes show how costly it is to make cutting-edge chips, argues mak_robyn:

U.S. chipmaker Intel on July 27 said Murthy Renduchintala, its chief engineering officer will leave the company on Aug. 3. This follows an earlier announcement that its new so-called 7-nanometer chip technology was six months behind schedule and it would consider contracting out more work to outside semiconductor foundries.

Shares of Taiwan Semiconductor Manufacturing Co, the world's largest contract chipmaker are up 14% since July 23. Shares of rival Samsung Electronics have risen 8% over the same period.

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