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Intel (INTC) to Invest in Europe's Semiconductor Ecosystem

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Intel Corporation (INTC - Free Report) has announced plans to invest €80 billion in the European Union over the next decade along the semiconductor value chain. That includes research and development (R&D), manufacturing and packaging technologies.

The company plans to invest an initial €17 billion in semiconductor fab mega-site in Germany, create a new R&D and design hub in France, and invest in R&D, manufacturing and foundry services in Ireland, Italy, Poland and Spain.

Intel intends to bring its most advanced technology to Europe, creating a next-generation European chip ecosystem while addressing the need for a resilient supply chain.

The initiative will boost Europe’s R&D innovation and bring leading-edge manufacturing to the region for the benefit of Intel’s customers and partners around the world.

The investment program is centered around balancing the global semiconductor supply chain with a major expansion of Intel’s production capacities in Europe.

In the initial phase, Intel plans to develop two semiconductor fabs in Magdeburg, Germany, the capital of Saxony-Anhalt. Construction is expected to begin in the first half of 2023, and production is planned for 2027.

The new fabs are likely to deliver chips using Intel’s Angstrom-era transistor technologies, serving the needs of both foundry customers and Intel for Europe and globally as part of the company’s IDM (integrated device manufacturer) 2.0 strategy.

Intel’s investment plans will likely accelerate chip design capabilities, boost the European material and equipment supplier industry.

Intel benefits from the increasing demand in the Data Center Group, with strong server recovery in enterprise and government.

The stock has lost 31.9% in the past year against the industry’s growth of 19%.

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INTC currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Clearfield, Inc. (CLFD - Free Report) is a better-ranked stock in the broader Zacks Computer and Technology sector, sporting a Zacks Rank #1. The Zacks Consensus Estimate for its current-year earnings has been revised 20.5% upward over the past 60 days.

Clearfield delivered a trailing four-quarter earnings surprise of 50.7%, on average. It has gained 77.6% in the past year.

Qualcomm, Inc. (QCOM - Free Report) , carrying a Zacks Rank #2 (Buy), is another solid pick for investors. The consensus estimate for current-year earnings has been revised upward by 12.2% over the past 60 days.

Qualcomm delivered a trailing four-quarter earnings surprise of 12.2%, on average. It has appreciated 7.7% in the past year.

Sierra Wireless, Inc. also carries a Zacks Rank #2. The consensus mark for current-year earnings has been revised upward by 237.5% over the past 60 days.

Sierra Wireless pulled off a trailing four-quarter earnings surprise of 58%, on average. The stock has, however, lost 2.3% in the past year.


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