In this video, Andrew Tonner examines Intel's potential foray into the chip fabrication business. With the PC market in decline, Andrew says, Intel needs to diversify into other sources of revenue, and chip fabrication would be one such source. While Intel has the size, scale and technology to pull this move off, chip fabrication requires a lot of cash to start up, and Intel has no major customer lined up to buy these chips. So while chip fabrication will bring in added revenue, Andrew argues, the startup costs may erode any revenues significantly.
For more, check out the video.
Andrew Tonner owns shares of Apple. The Motley Fool recommends and owns shares of Apple and Intel. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.