Last week, Intel announced plans to raise $15 billion in funding, but actually raised the financing threshold to $20 billion and took into account the rights of transaction participants to repurchase an additional $3 billion of stock within 30 days, bringing the total amount to $23 billion. Analysts at GF Securities believe that Intel’s move may herald the company’s success in the contract field.
Image source: Intel
Intel will be able to use the proceeds to expand and modernize manufacturing facilities that will be used to serve customers in Intel’s foundry services contract segment. Moreover, CEO Chen Liwu personally subscribed for shares in the company, which to a certain extent shows his confidence in the success of his company. Even taking into account the increase in capital costs, GF Securities experts expectedIntel’s contract business will reach breakeven in the fourth quarter of 2027 and begin to have a positive impact on the company’s overall profit margin in 2028.
Analysts believe that the quality of products manufactured using Intel 18A technology is quite high; many potential customers, including Apple, are interested in Intel’s services. Among the cloud giants, there are many companies that want to entrust Intel to use the EMIB layout to package their customized chips for data centers. Google and Amazon (AWS) were at least mentioned in this regard. According to GF Securities estimates, Intel will earn approximately US$1.1 billion from services related to the use of EMIB in 2027, and this amount will grow to US$7 billion in 2028.
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