Intel wants to regain its position as the world’s leading chipmaker, after being overtaken by rivals TSMC and Samsung in recent years, Intel CEO Pat Gelsinger said.
“We want to build everyone’s chips, everyone’s AI chips,” Gelsinger told CNBC on the sidelines of the Computex technology conference in Taipei on Tuesday. “And we want them to be built leveraging American factories.”
Intel is seeking to bolster its faltering foundry business, which recorded a wider operating loss of $7 billion in 2023 than the previous year. It is currently not among the top six foundries in terms of revenue, according to A Counterpoint Research Report On May 22nd.
The company was the world’s largest chip maker until 2017 when Samsung Electronics surpassed it in revenue. Taiwan Semiconductor Manufacturing Company It will reportedly overtake Samsung in 2023 To become the largest foundry in the world in terms of revenue.
“The first part is getting back into leadership, because a lot of the losses are tied to having uncompetitive processing technology,” Gelsinger said.
Up to $8.5 billion in CHIPS and Science Act funding from the Biden administration, with another potential $11 billion, is expected to help Intel advance semiconductor manufacturing and R&D.
“Capital is critical. And what we said is we have to have economic competitiveness if we want to build these factories in the United States and that’s what the CHIP Act did. It created a level playing field if I was building a factory in Asia versus a factory in Asia,” Gelsinger said. United State”.
Intel, which also designs the chips, wants to catch up with Nvidia and AMD after being largely on the sidelines of the AI craze that saw tech giants Meta, Microsoft and Google buy up as many Nvidia chips as possible.
During the Computex tech conference in Taipei on Tuesday, Gelsinger unveiled the new Xeon 6 processor for data centers with improved performance and power efficiency compared to its predecessor.
“Xeon 6 was a big step forward in our competitiveness to not only retain our market, but also regain some of the market share opportunities we had lost,” Gelsinger said.
“As we get past that and get back to it [chip manufacturing] “By leading the process, we will also have much better profitability,” he added.
China remains a core market for most US chipmakers, including Intel, despite Washington’s efforts to restrict chip sales to the country and amid Beijing’s push to reduce foreign dependence in the semiconductor sector.
“China is a big market for Intel today, and it’s a market we’re investing in to become a big market for Intel tomorrow,” Gelsinger said.
“And as I would say, by carefully navigating, building products, making sure that we comply with the laws of both countries, but then also building compelling products.”
U.S. chip giants Intel, Broadcom, Qualcomm and Marvell Technology all generate more revenue from China than from the United States, data from S&P Global collected in March showed.
“Freelance web ninja. Wannabe communicator. Amateur tv aficionado. Twitter practitioner. Extreme music evangelist. Internet fanatic.”