Santa Clara, California – Intel is determined to reclaim its position as the world’s top chipmaker, according to CEO Pat Gelsinger. After being surpassed by competitors TSMC and Samsung in recent years, Intel aims to become a leader in chip production once again.
During the Computex tech conference in Taipei, Gelsinger expressed his vision for Intel to manufacture chips for various companies and AI technologies while utilizing U.S. factories. The company faces challenges in its foundry business, reporting a $7 billion operating loss in 2023 and falling out of the top six foundries by revenue, as stated in a Counterpoint Research report.
Intel lost its title as the largest chipmaker in the world when Samsung Electronics surpassed its revenue in 2017. Taiwan Semiconductor Manufacturing Company then claimed the top spot by revenue in 2023, overtaking Samsung. Gelsinger acknowledged the importance of regaining leadership by improving process technology to enhance competitiveness.
With financial support from the CHIPS and Science Act, Intel anticipates receiving up to $8.5 billion in funding from the Biden administration, with a possible additional $11 billion to advance semiconductor manufacturing and research. Gelsinger emphasized the critical role of capital in enhancing economic competitiveness for U.S.-based factory construction.
Beyond chip production, Intel aims to catch up with rivals like Nvidia and AMD in the AI market. Gelsinger unveiled the new Xeon 6 processor during the Computex conference, featuring improved performance and energy efficiency for data centers. The CEO highlighted the processor’s role in regaining market share and profitability for Intel.
Despite tensions and restrictions on chip sales to China, Intel recognizes the country as a crucial market for its products. Gelsinger emphasized the importance of navigating legal compliance while developing compelling products for both the U.S. and Chinese markets. Data from S&P Global shows that U.S. chip giants derive more revenue from China than from the U.S., emphasizing the significance of the Chinese market for Intel and other key players in the semiconductor industry.