Intel Chief Executive Pat Gelsinger said the company hopes to regain its position as the world’s leading chipmaker after being overtaken by rivals TSMC and Samsung in recent years.
“We want to make everyone’s chips, everyone’s artificial intelligence chips. We want to use American factories to make them,” Kissinger told CNBC on the sidelines of the Computex technology conference in Taipei on Tuesday.
Intel seeks to revive its troubled foundry business, which saw operating losses widen to $7 billion in 2023 from the previous year. According to one company, it is not currently among the top six foundries by revenue. Counterpoint research report May 22nd.
The company was the world’s largest chipmaker until 2017, when Samsung Electronics surpassed it in revenue. British Semiconductor Reportedly to surpass Samsung in 2023 Become the world’s largest foundry by revenue.
“The first priority is to restore leadership because many of the losses are related to uncompetitive process technology,” Kissinger said.
Up to $8.5 billion in Chip and Science Act funding from the Biden administration, as well as another $11 billion in potential funding, are expected to help Intel advance its semiconductor manufacturing and research and development.
“Capital is critical. What we’re saying is if we’re going to build these factories in the United States, we have to be economically competitive, and that’s what the Chip Act does. If I’m going to build a chip factory, it creates create a level playing field.
Intel, which also designs chips, also wants to catch up Nvidia and AMD After largely being on the fringes of the artificial intelligence craze, tech giants Meta, Microsoft and Google bought up as many Nvidia chips as they could.
At the Computex technology conference in Taipei on Tuesday, Gelsinger unveiled a new Xeon 6 processor for data centers that offers improved performance and energy efficiency compared with its predecessor.
“Xeon 6 is a big step forward in our competitiveness, not only to retain our market but also to regain some of the market share opportunities we have lost,” Gelsinger said.
“When we get through this and regain our (wafer manufacturing) process leadership, we will also have better profitability,” he added.
China is still a big market
Kissinger said: “China is a big market for Intel today, and we are investing in China to make it a big market for Intel tomorrow.”
“Like I would say, err on the side of caution, build the product, make sure we comply with the laws of both countries, and then build a compelling product.”
U.S. chip giants Intel, Broadcom, Qualcomm and Marvell Technology all have higher revenues in China than in the United States, according to data compiled by S&P Global in March.
About The Author
