Intel Stock Drops Ahead of Foundry Event Today. Here’s What to Expect.

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Intel stock was sliding ahead of its foundry-business update on Wednesday.

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Chip maker


is set to offer an update on its foundry business on Wednesday as it continues to build out new facilities to expand the custom chip-making business. Its stock is sinking ahead of the event’s start at 11:30 a.m. EST today.

Chief Financial Officer David Zinsner will discuss the company’s third-party chip manufacturing business, officially created late last year, at a webinar at 11:30 a.m. Eastern Time on Wednesday.

Intel’s (ticker: INTC) Foundry Services is a capital-intensive chip manufacturing business. Its “ambition is to be the No. 2 foundry in the world,” former president of Intel Foundry Services Randhir Thakur, told Nikkei in November. That means competing against

Taiwan Semiconductor Manufacturing

Company (TSM) and Samsung Electronics (005930. Korea).

The company has been making strides toward that goal. Intel recently announced billion-dollar investments to build a semiconductor assembly and test facility in Poland, two factories in Germany, and another in Israel.

Mizuho analyst Jordan Klein on Wednesday said it’s likely Zinsner will walk through the timing of foundry expansion plans globally and outline the initial impact on the balance sheet from the investments, while highlighting some long-term goals.

But plants aren’t much use if no one uses them, and UBS analyst Timothy Arcuri on Tuesday said he expects Intel to provide an update on its customer adoption through the foundry services business. Nvidia’s CEO Jensen Huang in…


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