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-0.000459033893781639 -0.00278622898318644 -0.00531625300240182 -0.013151854817187 0.00613824392847611 0.00321323725647183 0.0110274886575928 0.013376034160662
Stock impact report

Citi says reported Intel-TSMC JV would be 'the wrong move' [Yahoo! Finance]

Goldman Sachs Group, Inc. (The) (GS) 
Last goldman sachs group, inc. (the) earnings: 4/15 07:30 am Check Earnings Report
US:NYSE Investor Relations: goldmansachs.com/investor-relations
Company Research Source: Yahoo! Finance
Instead, the firm believes Intel should abandon its merchant foundry ambitions and focus on manufacturing its own chips. "Intel stock is up 7% on a report from The Information that TSMC and Intel have tentatively agreed to form a JV whereby TSMC would operate Intel's fabs, with TSMC taking a 20% stake in the new company," Citi notes. However, the bank questions whether such a partnership is viable. "We do not believe TSMC operating/forming a JV with Intel would work given differences in manufacturing and operations." Beyond operational concerns, Citi also doubts the appeal of Intel's foundry business for potential customers. "We also question the wisdom of fabless companies investing in this JV," the firm states. "We believe Intel foundry has proven over years it cannot compete with TSMC, and forcing a company to use vastly inferior manufacturing would destroy shareholder value of a fabless company such as QCOM or AVGO." Rather than pursuing the JV, Citi argues Intel should Show less Read more
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