Intel’s CEO Charts Bold New Course With Foundry Business Revamp

Strategic Reassessment of Manufacturing Technology

Intel Corp. is poised to undergo a significant transformation in its contract manufacturing strategy, according to sources with insight into the developing plan. In a decisive move, CEO Lip-Bu Tan is considering a strategic pivot that would see the company cease offering its long-established 18A and 18A-P chipmaking technologies to external clients. This approach represents a notable departure from the path set by his predecessor, with potentially steep financial implications.

Revisiting Established Investments

Since assuming the helm in March, Tan has been aggressively streamlining operations and pursuing avenues to reinvigorate the legacy U.S. chipmaker. His recent focus has shifted towards minimizing the emphasis on 18A technology—once a cornerstone manufacturing process developed at great cost—which is now viewed as less competitive compared to evolving industry standards, including rival advancements spearheaded by TSMC. This reorientation comes as industry analysts estimate that discontinuing external sales of the technology could lead to write-offs in the hundreds of millions, if not billions, of dollars.

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Competitive Landscape and Future Prospects

Intel’s recalibration of its manufacturing strategy is being viewed in the context of intense global competition. With TSMC’s N2 production timeline on track, Tan’s preliminary approach is to allocate greater resources to the next-generation 14A process—positioning it as a formidable contender against TSMC’s technology. This move is designed to woo high-profile clients such as Apple and Nvidia, who are currently reliant on TSMC for their chip production. The proposed strategy, which includes detailed discussions with Intel’s board in upcoming meetings, underscores the high stakes involved.

Balancing In-House Requirements and External Commitments

Despite a potential strategic shift, Intel is committed to fulfilling existing obligations. The company will continue to use the 18A process for in-house chip production, including its upcoming Panther Lake laptop series slated for 2025. Additionally, limited production for key clients like Amazon and Microsoft will persist, fulfilling urgent contractual deadlines while the 14A process is further refined.

Forward Momentum Amid Market Challenges

Facing unprecedented financial pressures—exemplified by a record unprofitable year in 2024 with an $18.8 billion net loss—Tan’s recalibration strategy reflects not only a commitment to technological innovation but also a calculated effort to restore Intel’s competitive edge. By leveraging decades of industry relationships and expertise, Tan is orchestrating a turnaround that could reinvigorate Intel’s manufacturing prowess, drive significant investments in critical processes, and ultimately realign the company’s market positioning.

As Intel navigates this transformative era, the industry will be watching closely to see whether the pivot to 14A can deliver the competitive advantages necessary to reclaim leadership in the semiconductor industry.

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Bank of Cyprus Upgrade Signals Fresh Optimism For Greek And Cypriot Banks

by THEFUTURE.TEAM

June 26, 2026

Regional Banks Enter A More Favorable Cycle

Bank of Cyprus and Eurobank are well positioned to benefit from a renewed re-rating of Greek and Cypriot bank stocks, according to Cyprus-based investment firm Roemer Capital, which upgraded Bank of Cyprus to a buy rating and reaffirmed its positive view on Eurobank.

The firm cited easing geopolitical tensions, resilient economic growth in Greece and Cyprus, lower funding costs and Greece’s expected transition to developed-market status as the main factors supporting the sector.

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Roemer Capital also lowered its cost of equity assumptions, updated its forecasts following first-quarter 2026 results and extended its valuation horizon to the end of 2027, raising target prices across its banking coverage.

Bank Of Cyprus Gets The Largest Upgrade

Bank of Cyprus received the biggest revision, with Roemer Capital upgrading the stock from hold to buy and setting a target price of €11.10, implying potential total upside of 27%.

The firm highlighted the bank’s strong capital generation, profitability and projected 100% dividend payout, describing it as the strongest capital-return story among the banks under coverage. Roemer Capital maintained its buy rating on Eurobank, assigning a target price of €4.90 and forecasting potential upside of 28%. The report said the bank is well placed to benefit from loan growth, improving operating performance and merger-and-acquisition synergies.

National Bank of Greece and Piraeus Bank also retained buy ratings, with expected returns ranging from 25% to 36%. Optima Bank was upgraded to buy, while Alpha Bank remained at hold on valuation grounds.

Why Growth Still Sets The Region Apart

According to Roemer Capital, Greek and Cypriot banks continue to benefit from stronger economic fundamentals than many western European peers. The report pointed to faster economic growth, healthier balance sheets, low levels of non-performing exposures, capital ratios approaching 20% and strong customer deposit bases.

Analysts expect performing loans across the sector to grow at a compound annual rate of 6% to 8% through 2028, supported by private investment, digitalisation, green manufacturing, supply-chain expansion and a gradual recovery in household lending.

The report also said the conclusion of lending under the EU Recovery and Resilience Facility is unlikely to materially affect credit growth, as banks have already shifted back towards traditional commercial lending. Roemer Capital expects Euribor to remain between 2.2% and 2.5%, a level it believes should support both lending activity and net interest margins.

Geopolitics, Valuation And Market Structure Support The Case

The report said improving geopolitical conditions have strengthened the investment outlook, noting that Brent crude prices have largely returned to pre-war levels while Greek government bond yields have stabilised at around 3.5%. Although geopolitical risks remain, Roemer Capital believes the likelihood of a major inflationary shock or significant pressure on bank profitability has eased.

Another important catalyst identified by the firm is Greece’s expected promotion to developed-market status by FTSE Russell, STOXX and MSCI over the coming months.

According to the report, the reclassification should improve liquidity and attract a broader base of international investors. Roemer Capital also said Euronext’s acquisition of the Athens Exchange is expected to strengthen market infrastructure and increase international visibility, particularly for Bank of Cyprus and Optima Bank.

The firm noted that Bank of Cyprus has already benefited from its Athens listing, with average daily trading value increasing from less than €400,000 before its September 2024 move to nearly €6 million afterwards.

Economic Momentum Remains A Core Tailwind

Roemer Capital said both Greece and Cyprus have moved beyond post-crisis recovery and are now supported by private-sector-led growth. For Cyprus, the report highlighted recent tax reform and efforts to simplify the legal and regulatory framework, while also noting that limited foreign banking competition continues to support domestic lenders.

Overall, Roemer Capital expects Greek and Cypriot banks to remain well-positioned for profitable loan growth over the coming years.

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