You often heard invest in something you know. One of the ways that manifest itself is to examine what do you buy and who are the companies behind the things you buy. Unless you feel you are an exception, chances are reasonably high other people buy similar things. Then you do your homework to narrow down your field and invest in the best of the breed. A number of years ago, you would have looked at your computer and which company makes the computer work – many people would have seen the advertising logo – Intel inside.

In an article by Tripp Mickle of the New York Times News Service, for a time investing in Intel was an easy win, but then things happened which made the stock go sideways and from an investment point of view lost opportunity, however things maybe changing.

Outside of Phoenix, Arizonia Intel has spent $20 billion on a 4-story manufacturing plant that it hopes will turn its future around. The plant known as a Fab 52 is designed to make more powerful and efficient computer chips. The process uses the tools from ASML, a Dutch manufacturer of lithography machines. to manufacture cutting edge semi-conductors in the US.

10 to 20 years ago, Intel was the number one place to be for computer chips, but it fell behind Taiwan Semiconductor Manufacturing Co (TSMC) after it failed to develop ASML technology. Intel was dropped by Apple and missed the mobile phone computer chips.

Since then, a number of CEOs have come and gone, the latest is Lip-Bu Tan. He agreed to the Trump’s administration of $8.9 billion investment in treasury shares for 10% of the business. The administration then released the funds from the Biden’s CHIPS and Science Act.

Intel is trying to go back to the time it was the leader in new technology. There is no guarantee but if Intel can persuade others in the tech industry that the process works better than TSMC, they are off to the races.

Linking to dividend paying stocks, most of us are fascinated and interested in new technology, we think it can change the world for better and make money at the same time. There are always a number of ways to play the new technology – the makers or the users. Sometimes one is better than the others, but if you invest in the makers, part of the process of your homework is to ensure the company stays at the forefront of new technology the marketplace is adopting and using.

There are more questions than answers, till the next time – to raising questions.