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Intel CEO Pat Gelsinger said the company wants to reclaim its position as the world’s leading chipmaker after being overtaken by rivals TSMC and Samsung in recent years.
“We want to make chips for everyone, AI chips for everyone, and we want to use U.S. factories to make them,” Gelsinger told CNBC on the sidelines of the tech conference Computex in Taipei on Tuesday.
Intel is looking to shore up its struggling foundry business, which posted a $7 billion year-over-year operating loss in 2023. The company is not currently among the top six foundries by revenue. Counterpoint Research Report May 22nd.
The company was the world’s largest semiconductor manufacturer in terms of sales until it was overtaken by Samsung Electronics in 2017. Taiwan Semiconductor Manufacturing Company Reported to overtake Samsung in 2023 It becomes the world’s largest foundry by revenue.
“First of all, it’s about regaining leadership, because a lot of our losses have to do with uncompetitive process technologies,” Gelsinger said.
The Biden administration’s CHIPS and Science Act funding is expected to provide up to $8.5 billion, with an additional $11 billion, to help Intel boost its semiconductor manufacturing and research and development.
“Capital is crucial. We say if you’re going to build a factory in the U.S. you need to be economically competitive, and that’s what the chip law is about — leveling the playing field between building a factory in Asia and building a factory in the U.S.,” Gelsinger said.
Intel, which also designs chips, NVIDIA and Am It has largely remained on the sidelines of the AI frenzy that has seen tech giants Meta, Microsoft and Google buy as many Nvidia chips as they can.
At the Computex technology conference in Taipei on Tuesday, Gelsinger unveiled its new Xeon 6 processors for data centers that offer improved performance and power efficiency over the previous generation.
“The Xeon 6 represents a major step forward in our competitive position, not only to hold the market but also to regain some of the market share opportunities that we had lost,” Gelsinger said.
“And then, getting through it, [chip manufacturing] Once process leadership is established, profitability will also improve significantly,” he added.
China remains a big market
“And what I would say is steer carefully, build your product, make sure you’re complying with the laws of both countries, but build a product that’s compelling.”
According to data compiled by S&P Global in March, U.S. semiconductor giants Intel, Broadcom, Qualcomm and Marvell Technology all derive more revenue from China than from the United States.