Semiconductors giant Intel: from high-tech to commodities?
Semiconductors made Intel. But one analyst says the firm can move beyond semiconductors to become a leading commodity producer of solar panels, smart-grid products.
Intel the tech giant. How about Intel the commodity play? According to one strategist, the chip giant has the ability to move beyond its world of semiconductors to become a leading commodity company focused on solar panels and smart grid solutions.
"Intel has always been at the forefront when manufacturing sillicon wafer technology, I believe they can use that same manufacturing expertise and apply that to solar," John Licata, Chief Commodity Strategist at consultancy Blue Phoenix told CNBC on Tuesday. Click here for full interview.
One of the biggest challenges facing the solar industry, Licata noted, is the technology behind retaining heat. And it's in this area Licata thinks Intel could apply its know-how.
"As nanotechnology continues to challenge size structure by making things increasingly smaller, Intel needs to discover the next generation of mineral combinations to better store energy in chips and more importantly in solar power," Licata said. "Intel has the opportunity to be a leader in solar."
Intel may be the leading maker of advanced semiconductor chips globally, but its market share has been chipped away in recent years as close rivals such as Advanced Micro Devices play catch-up.
"Intel has lacked innovation," Licata said, which is why the tech firm has turned to its investment arm — Intel Capital — to look for the next big driver of growth. Since 1991, Intel Capital has poured $9.8 billion into 1,100 companies in over 40 countries around the world, most of them in green technology.