intel’s New CEO Doubles Down on US-based Chip Production and Foundry Business
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Lip-cus Tan reaffirms commitment too American manufacturing and expands foundry services amidst AI chip competition.
A Strong Stance on American manufacturing
In his inaugural address at Intel Foundry “connect 2025” in san Jose, California, Intel’s newly appointed CEO, Lip-cus Tan, made a resounding declaration of commitment to domestic semiconductor production. Tan emphasized Intel’s unique position as the only company managing the entire chip-making process, from initial research to final production, within the United States. He also expressed his satisfaction wiht the prioritization of technology by the Trump administration, signaling a potential alignment with governmental initiatives to bolster American technological independence.
We are the only company that manages the entire semiconductor process, from research and development to production, in the United States… And I am very satisfied with the priority that the trump administration has given to technology.
Lip-cus Tan, Intel CEO
Intel has faced challenges in recent years, particularly with the rise of generative AI. Since the explosion of ChatGPT in late 2022, Intel’s stock value has reportedly decreased by approximately 50% due to delays in competing with rivals like Nvidia in the production of specialized AI chips. Nvidia, for example, currently dominates the market for GPUs used in AI training, holding an estimated 80-95% market share. This context underscores the urgency for Intel to adapt and innovate.
Intel’s Foundry Strategy: A Path to Recovery
Under Tan’s leadership, intel is charting a course to regain its competitive edge through advanced manufacturing solutions. A key element of this strategy is the Intel Foundry division, which focuses on chip production. Tan highlighted the progress made with Intel 18a, Intel 18a-P, and especially Intel 14a technologies, all of which represent important advancements in processor creation. This emphasis clearly indicates that foundry services will remain a core business for Intel.
No Sale in sight: Commitment to Foundry Services
Addressing speculation about a potential sale of Intel’s foundry business, Tan firmly stated his commitment to maintaining and expanding these operations.Following the departure of his predecessor, Pat Gelsinger, rumors circulated about a possible separation of Intel’s design and production divisions. However, Tan has dispelled these rumors, affirming that Intel will not be divesting its foundry assets.Instead, the company plans to open its foundry services to third-party clients, signaling a strategic shift towards becoming a major player in the global foundry market.
Customer-Centric Approach to Gain Trust
Recognizing that Intel competes with many of the companies it seeks to serve as foundry clients, Tan stressed the importance of building trust. He emphasized that Intel will prioritize customer needs and adapt to their preferred ways of working, rather than imposing its own conditions. We will let ourselves be guided by the customer’s voice and act according to his feedback,
Tan stated,adding,We work every day to earn his trust.
This customer-centric approach is crucial for Intel to establish itself as a reliable and collaborative partner in the competitive semiconductor landscape.
