According to CEO Pat Gelsinger, Intel, once the leading chipmaker in the world, is working to reclaim its top position. In recent years, the company was surpassed by TSMC and Samsung. Gelsinger expressed a strong desire to build a broad range of chips, including AI chips, using U.S. manufacturing facilities. He shared these plans during an interview at the Computex tech conference in Taipei.
Intel's foundry sector, which manufactures chips, reported a significant operating loss of $7 billion in 2023, a worsening from the previous year, and is not among the top six in terms of revenue. This decline is in stark contrast to its status until 2017 when it was overtaken by Samsung, and then by TSMC in 2023.
Gelsinger emphasized the importance of regaining leadership in chip manufacturing to reduce losses linked to outdated technology. He also highlighted the strategic importance of funding from the U.S. government through the CHIPS and Science Act, which provides financial support expected to enhance Intel's semiconductor manufacturing and R&D efforts.
Furthermore, Intel is striving to improve its competitiveness against Nvidia and AMD in the AI technology sector, having fallen behind as companies like Meta, Microsoft, and Google have heavily invested in Nvidia's AI chips.
At the same conference, Gelsinger introduced the new Xeon 6 processor, designed for data centers, which offers enhanced performance and efficiency over its predecessors. He stated that this new processor is a significant step in retaining and possibly increasing Intelās market share, and he is optimistic about returning to profitability as they achieve leadership in chip manufacturing processes.
Key Points
Intel's CEO, Pat Gelsinger, expressed a strong desire to manufacture all types of chips, including AI chips, in U.S. factories. He shared this during an interview at the Computex tech conference in Taipei.
Intel used to be the top chipmaker in the world until 2017 when Samsung took the lead in terms of revenue.
Regarding the new Xeon 6 processor for data centers, Gelsinger noted that it represents a significant improvement in Intel's ability to compete. This processor is expected to help Intel not only maintain its market position but also regain some of the market share it has lost in recent years.
FAQs
Q1. What did Intel's CEO say about their manufacturing plans?
Intel's CEO, Pat Gelsinger, expressed a strong commitment to manufacturing all types of chips, focusing specifically on AI chips, within U.S. factories. This strategy was highlighted during his interview at the Computex tech conference in Taipei, emphasizing a shift towards leveraging local manufacturing capabilities to enhance production efficiency and innovation.
Q2. Why does Intel want to use U.S. factories for AI chips production?
Intel is focusing on U.S. factories for chip production to benefit from advanced manufacturing technologies available domestically and to take advantage of financial incentives provided by U.S. government policies. This strategic move aims to boost competitiveness and secure a supply chain within the United States.
Q3. Was Intel always behind its competitors?
Intel was the leading chip manufacturer globally until 2017. However, it was surpassed by Samsung in terms of revenue, losing the top spot due to rapid advancements and aggressive strategies by its competitors, including Samsung and TSMC.
Q4. How does the Xeon 6 processor help Intel?
The Xeon 6 processor is crucial for Intel as it aims to regain lost ground in the chip market. By offering superior performance and efficiency, this processor helps Intel not only retain existing customers but also attract new ones, potentially increasing its market share and improving overall competitiveness.
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