Intel says new chip technology is six months behind, shares drop 9%

Intel Corp said on Thursday its new seven-nanometer chip technology was six months behind schedule, sending its shares down 9 percent in extended trading.

The new delays are a blow for the Santa Clara, California-based chipmaker, which struggled with years of delays for its current 10-nanometer chips.

Intel’s seven-nanometer manufacturing delays extend the lead in the smaller, faster chip technology held by Taiwan Semiconductor Manufacturing Co Ltd and will likely benefit rivals Advanced Micro Devices Inc and Nvidia Corp which outsource their manufacturing to TSMC.

Shares of AMD rose 6 percent in extended trading.