Intel Faces Securities Suit Over Production Delay, Stock Drop

Intel Corp. allegedly failed to tell investors about a defect that would delay production of 7-nanometer products and allow competitors to take some of its market share, according to a suit filed in California federal district court.

The semiconductor manufacturer didn’t disclose that the defect would lead to a six-month delay and require Intel to consider relying on third-party foundries to make its 7-nanometer products, the would-be investor class said in a complaint filed Tuesday in the U.S. District Court for the Northern District of California.

Intel warned investors in an April Securities and Exchange Commission filing that the timely ...