Recently, after a phone call with the big boss from the East, a 20-page INTC PPT was circulated, and the content was generally well-received.

- Core logic: Long-term geopolitical hedging tool/geopolitical put option, shifting from a single-supplier model for ultra-large-scale tech companies to a dual-core model.

- Challenges to overcome: Engineering management standards and rapid yield improvement, geopolitical coordination, and trust in collaboration with ultra-large-scale tech companies.

- Near-term catalyst: Microsoft has begun exploring this collaboration model, and Google and the metaverse platform company also hope to take the initiative in cooperation through this approach.

- Valuation:

1. Intel's current market capitalization is $170 billion, with a price-to-sales ratio of about 3x, significantly lower than TSMC and NVIDIA.

2. If Intel's packaging business achieves scaled implementation by 2026 and the 18A process yield meets targets, its price-to-sales ratio could rise to 4x, corresponding to a market cap of ~$250 billion and a share price of ~$50.

3. If Intel successfully secures large orders from Google and the metaverse platform company by 2027 and is recognized as the world's second-largest advanced packaging supplier, an 8x price-to-sales ratio would be a reasonable expectation, with a market cap of $500 billion and a share price of $100.

Positioning focus of TSMC and INTC:

TSMC's wafer-level system integration packaging technology is like a fully equipped high-end one-stop shopping mall—stable performance but costly and highly integrated.

Intel's Embedded Multi-die Interconnect Bridge (EMIB) and Co-EMIB technologies are like a high-bandwidth cross-link network, featuring modularity, openness, strong scalability, and high cost-performance.