Markets | 3 years ago

Intel Corporation (NASDAQ:INTC) Steps Up Investment in 7-Nanometer

In the recent times, Intel Corporation (NASDAQ:INTC), one of the top Nasdaq stocks company has been facing difficult times in adopting the new chip manufacturing technologies. The company has experienced delays and difficulties in production of the 14–nanometer technology, a situation that could impede the unveiling of the 10- nanometer technology.

The microprocessor giant has been unable to satisfactorily account for the several problems encountered during its most recent manufacturing technologies. Intel, one of the best Nasdaq stocks company has however stepped up research and innovation efforts regarding the 7-nanometer manufacturing technology so as to avoid a repeat of the perennial problems.

During the development of the 10-K, the company stepped up its research and development budget by $612 million representing 5% increase compared to the previous year. The company says the increase was necessitated by an increase in expenses from higher investment, acquisition of Altera, the 2016 saving program, new devices and higher cost incurred in development of the new 7nm process technology.

Intel spends a considerable amount of money on chip development and manufacturing technology. The company has the highest R&D kitty compared to its competitors listed on the Nasdaq stocks. However, an increase in spending on the 7-nanometer manufacturing technology does not imply all will be smooth for this technology than it was for the 14 and 10- nanometer. The increase in spending only shows the company recognizes the need to put in more money if it is to get its chip development technology back on feet.

Due to delays in change of manufacturing technology, the company has hard difficult times to convince investors that it still maintains the lead in the manufacturing technology. If increasing the level of investment in the 7-nanometer technology will accelerate the company’s speed of innovation and rate of adoption of new technologies, then this will be a good move because improved technology will mean better products and reduced costs.

It will takes many years before Intel puts its first 7-nanometer chips on the market with the first sale scheduled for 2022 if the process is carried out flawlessly.

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