Intel likely to manufacture Arm chips, analyst says
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Intel (NASDAQ:INTC) is likely to have Arm Holdings (ARM) as one of its foundry customers, with the British chip design firm using Intel's 18A advanced node, a widely watched analyst said on Friday.
In a blog post, TF International Securities analyst Ming-Chi Kuo said that the collaboration between the two companies goes beyond advanced node optimization, with Arm likely becoming a customer of Intel's 18A node and thus producing Arm's own chips.
"With no baseband IP and less multimedia-related IP, ARM is unlikely to compete with existing smartphone customers (such as Apple, Qualcomm, etc.)," Kuo wrote in the post. "However, if ARMâs own chips ship smoothly, this shipment record will still benefit Intelâs foundry business and attract orders from other customers, especially for HPC/computing applications."
ARM (ARM) recently filed to go public and said it expects to sell shares between $47 and $51 per share. On Friday, it was reported that the offering, which could value the firm north of $50B, was five times oversubscribed.
On Thursday, investment firm Citi said Intel's (INTC) foundry customer may be a "whale," referring to its size, but did not make any mention of what specific company it may be.
Earlier this year, Intel (INTC) CFO David Zinsner said he expects the company to announce a major foundry customer later this year as the semiconductor giant attempts to compete with the likes of Taiwan Semiconductor (TSM), GlobalFoundries (GFS) and Samsung (OTCPK:SSNLF) in chip manufacturing for other companies.
Intel (INTC) shares were fractionally higher on Friday, as they looked to notch their 10th straight day of gains.

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