Will Intel lose its position as a semiconductor market leader?

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Competitors move ahead to capture market as Intel struggles to produce next generation chip

Gordon Moore, the co-founder of chip-maker Intel Corporation, is best known for predicting that the number of transistors on computer chips will double every two years. For decades his observation, known as Moore’s law, remained valid. But now the company he helped found is violating the same ‘law’.

The Santa Clara-based company has indicated that it might have to rely on third-party manufacturers to bring the products to market at the right time and price.Intel remains the world’s leader when it comes to producing microprocessors for personal computers. A generation has grown up using Intel processors in their PCs.

The term nanometer is used for the size of the transistors - as the size gets smaller, more transistors can be squeezed together, adding to overall computing power. Its management had to face embarrassment two years back after repeated delays in bringing its current 10 nanometer generation chips to the market.

Problems at Intel have naturally worked in favour of TSMC, which saw its stock market value increase while Intel’s shares took a hit. The company was also slow to capture the smartphone processor market. ARM’s CPU architecture dominates that segment with little chance of Intel being able to make any sort of gain.

 

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