A recent Morgan Stanley report took an in-depth look into Intel Corporations’s INTC 1.76% unique manufacturing advantage that may soon be disappearing. Analysts believe that Intel’s window of opportunity to capitalize on its FINFET technology and expand into new markets will likely close in 2015.
The FINFET Monopoly
Analysts discuss Intel’s FINFET three-dimensional transistor manufacturing technology as one reason why Intel will have a tougher road ahead. For the past three years, Intel has enjoyed a monopoly on FINFET.
Intel had planned to use FINFET to expand outside of its core CPU and server manufacturing business and into the growing foundry, tablet and smartphone fields.
Chinese Competition
Intel’s ability to obtain a foothold in these areas may have fallen short of expectations, and the company’s monopoly on FINFET will likely end in 2015.
According to Morgan Stanley analyst Bill Lu, Chinese competitor Taiwan Semiconductor Manufacturing Co Ltd TSM 1.88% is expected to have its own FINFET technology operational in early 2015. “We expect TSMC will make significant strides with its 16 nm FINFET technology, which should see first production in 1Q15 with the original FINFET technology, and we also believe a second version called 16 plus is seeing better yield ramp and could hit volume earlier than expected.”
What Does It Mean For Intel Stock?
Analysts believe that significant success in new markets is already priced into Intel’s stock.
While they maintain that Intel certainly has the potential to gain market share in the foundry business, it will only do so if it can…
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