Last week we heard news of Intel delaying their 7nm chips by 6 months until late 2022 or early 2023, this resulted in a major crash of Intel’s share prices (and allowing AMD to pull ahead for the first time ever). Now, a famed US law firm is suing Intel on behalf of investors as they accuse Intel of not sharing the delay information earlier to investors.
The Hagens Berman law firm is now calling for investors to join a class-action lawsuit against Intel for investor’s fraud. The official statement reports: “The investigation centers on whether Intel misrepresented and concealed manufacturing and performance issues with its next generation 7-nanometer chips.”
Apparently, in 2019 Intel continuously claimed that their first 7-nanometer chips would start shipping in 2021, which was well received considering the continued delays to the 10nm chips and the reported doubling of area efficiency from 10nm as well. Intel repeatedly assured investors, once again reinstating the 7nm timetable. But of course, plans changed after Intel supposedly found a defect in their 7nm chips, causing the recent delay.
“We're focused on investors' losses and whether Intel misled investors about the 7nm schedule and related manufacturing issues,” said the Hagens Berman partner leading the investigation, Reed Kathrein.
With Nvidia possibly acquiring ARM, and now this news of Intel? This is surely set to be one of the strangest years for the hardware industry.
What do you think? Did Intel do wrong to their investors? What could this mean for the US chipmaker? Let us know!