Intel (NASDAQ:INTC) could shift its immediate strategy toward revitalizing its chip design focus and expanding its foundry business by securing key clients like Nvidia (NASDAQ:NVDA) and Broadcom (NASDAQ:AVGO), according to UBS.
In a note to investors, UBS analyst Timothy Arcuri wrote that the near-term plan under new CEO Lip-Bu Tan is likely to highlight Intel's design and foundry capabilities. Arcuri added that Intel is working to finalize commitments from Nvidia or Broadcom to use its foundry services, while also advancing its 18A manufacturing process.
A new lower-power version of that process, called 18AP, is in development and could be more appealing to prospective customers. Arcuri said Nvidia appears closer than Broadcom to adopting Intel's foundry technology, potentially for gaming applications, although power consumption remains a major concern.
Intel may also try to compete more closely with Taiwan Semiconductor (NYSE:TSM) by improving its packaging technologies. Its Embedded Multi-Die Interconnect Bridge platform could bring Intel's offerings closer to TSMC's CoWoS-L, improving its appeal to Nvidia and other high-performance customers.
In addition, Intel's collaboration with United Microelectronics (NYSE:UMC) is reportedly progressing well, with production possibly beginning in the second half of 2026. This could position the IntelUMC partnership as a secondary high-voltage FinFET source behind TSMC, and potentially enable a ramp into future Apple products.
Arcuri said more details on Intel's foundry developments are expected at the upcoming Direct Connect event on April 29.
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