Intel Corporation

Intel Earnings in Focus as Supply Chain Constraints Test AI Growth Plans

April 21, 2026 - Investors will closely watch Intel results on Thursday for signs that supply chain bottlenecks are easing and whether the chipmaker can capitalize on accelerating demand tied to artificial intelligence infrastructure.

Intel previously warned that shortages affecting its server processors — often deployed alongside GPUs from companies such as Nvidia — would be most severe in the first quarter before improving in the second.

Revenue and Profit Expectations

According to LSEG consensus estimates, Intel is expected to report:

Q1 revenue: $12.42 billion, down 1.9% year over year
Adjusted EPS: down nearly 90%
Data Center & AI segment revenue: $4.41 billion, up 6.8%

The figures will offer a clearer picture of whether Intel’s AI-related businesses can offset weakness in other segments.

AI Partnerships Add Momentum

Earlier this month, Intel expanded its AI CPU partnership with Google, strengthening its role in hyperscale cloud infrastructure.

The company also joined Terafab, the new semiconductor manufacturing initiative backed by Elon Musk, alongside Tesla and SpaceX.

These moves suggest Intel is pushing aggressively to remain relevant in the expanding AI compute ecosystem.

18A Process Under Spotlight

Another key focus for analysts will be Intel’s 18A manufacturing process, especially chip yields — the number of functional chips produced per silicon wafer.

Strong yield progress would be viewed as critical for Intel’s long-term foundry ambitions and ability to compete with rivals like TSMC and Samsung Electronics.

Analyst Ryuta Makino of Gabelli Funds said Intel needs yield improvements that exceed market expectations to make a stronger competitive push.

Stock Performance

Intel shares have rallied sharply in 2026 amid broader enthusiasm for AI hardware demand, as investors look for alternatives beyond GPU-heavy leaders like Nvidia.

Thursday’s report is expected to show whether Intel’s turnaround is gaining traction — or whether execution and supply constraints are still limiting its AI ambitions.

Source: https://www.reuters.com/business/media-telecom/intel-results-show-if-supply-chain-issues-are-dimming-its-ai-ambitions-2026-04-21/

Intel, Google Expand AI Infrastructure Partnership for Next-Gen Cloud Systems

April 14, 2026 - Intel and Google are strengthening their long-standing collaboration with a new multiyear agreement focused on advancing AI and cloud infrastructure.

The expanded partnership aims to enhance performance, scalability, and efficiency across Google Cloud data centers as demand for AI workloads continues to rise.

Focus on CPUs and heterogeneous systems

At the core of the collaboration is a system-level approach that combines Intel’s Xeon CPUs with custom infrastructure processing units (IPUs). While GPUs and accelerators are widely used for training and inference, CPUs remain essential for orchestration, data movement, and overall system control.

Intel’s latest Xeon 6 processors already power Google Cloud’s C4 and N4 instances, supporting workloads ranging from AI training coordination to latency-sensitive inference and general-purpose computing. The companies will also align their roadmaps across future Xeon generations to further optimize AI performance.

“AI is reshaping how infrastructure is built and scaled,” said Lip-Bu Tan, CEO of Intel. “Scaling AI requires more than accelerators – it requires balanced systems. CPUs and IPUs are central to delivering the performance, efficiency and flexibility modern AI workloads demand.”

Expanding custom IPU development

Alongside CPU deployment, the companies are deepening joint development of ASIC-based IPUs. These programmable units offload infrastructure tasks such as networking, storage, and security from CPUs, improving efficiency and resource utilization in hyperscale environments.

By redistributing workloads, IPUs help deliver more predictable performance and reduce system bottlenecks in complex AI deployments.

“CPUs and infrastructure acceleration remain a cornerstone of AI systems—from training orchestration to inference and deployment,” said Amin Vahdat, SVP and Chief Technologist for AI Infrastructure at Google. “Intel has been a trusted partner for nearly two decades, and their Xeon roadmap gives us confidence that we can continue to meet the growing performance and efficiency demands of our workloads.”

Building for future AI scale

The collaboration reflects a broader shift toward heterogeneous computing, where CPUs, GPUs, and specialized accelerators work together rather than relying on a single architecture.

By co-developing processors and infrastructure technologies, Intel and Google aim to create a scalable foundation for increasingly complex AI applications, helping enterprises deploy next-generation workloads more efficiently at scale.

Source: https://www.eenewseurope.com/en/intel-and-google-expand-ai-infrastructure-partnership/

Intel Joins Elon Musk’s Terafab Chip Factory Initiative

April 7, 2026 - Intel has joined a semiconductor manufacturing initiative alongside SpaceX and Tesla, part of Elon Musk’s “Terafab” project aimed at building a new chip factory in Texas.

Intel said its expertise in designing, fabricating, and packaging high-performance chips at scale will support Terafab’s goal of producing 1 terawatt of compute annually for AI, robotics, and space-based applications.

The project, first announced in March, is expected to power use cases ranging from AI infrastructure and autonomous vehicles to potential space data centers. While details of Intel’s exact role remain unclear, its involvement addresses concerns about execution, given SpaceX and Tesla’s limited experience in semiconductor manufacturing.

Building a chip fabrication plant is highly complex and capital-intensive, often requiring over $20 billion and years of development. Intel’s participation positions it as a key manufacturing partner and aligns with its strategy to secure major customers for its foundry business.

Following the news, Intel shares rose over 3%, reflecting investor optimism around the partnership.

Source: https://techcrunch.com/2026/04/07/intel-signs-on-to-elon-musks-terafab-chips-project/

Intel Buys Back Fab 34 Stake for $14.2B to Regain Full Control

April 1, 2026 - Intel has agreed to repurchase a 49% stake in its Fab 34 facility in Ireland from Apollo Global Management for $14.2 billion, reclaiming full ownership of a key manufacturing asset.

The move reverses a 2024 deal in which Apollo invested about $11 billion for the same stake under Intel’s “Smart Capital” strategy. Intel will fund the buyback using existing cash and roughly $6.5 billion in new debt, with expectations the transaction will support profitability and its credit profile starting in 2027.

Fab 34, located in Leixlip, is central to Intel’s manufacturing roadmap. The facility produces chips using Intel 4 and Intel 3 process technologies, including Core Ultra and Xeon processors, and is a major European site for advanced chip production using EUV technology.

Investors reacted positively, with Intel shares rising over 9% following the announcement, signaling confidence in the company’s decision to take tighter control of its manufacturing operations.

The move aligns with CEO Lip-Bu Tan’s broader strategy to strengthen Intel’s core business, though it comes at a higher cost than the original deal and adds new debt, leaving investors to weigh strategic control against financial pressure.

Source: https://www.thestreet.com/investing/stocks/intel-makes-major-fab-decision-amid-uncertainty

Intel CEO Lip-Bu Tan Marks First Year With Cost Cuts, Mixed Progress

March 17, 2026 - Intel CEO Lip-Bu Tan has completed his first year leading the chipmaker, delivering early financial stabilization while ongoing challenges—particularly in its foundry business—remain unresolved.

Since taking over in early 2025 following Pat Gelsinger’s departure, Tan has focused on aggressive cost control. Intel reduced its workforce by 32% to 85,100 employees and cut capital expenditures by 26% to $17.67 billion. Operating expenses also declined, helping improve full-year operating income by 81% to −$2.21 billion.

The company strengthened its balance sheet, with cash rising 73% to $14.27 billion, supported by divestitures and external investments, including funding from Nvidia and SoftBank.

On the technology front, Intel advanced its 18A process node, reaching full production by Q3 and shipping its first products in Q4. However, Tan acknowledged that manufacturing yields still need improvement.

Despite progress, Intel continues to face strong competition from Advanced Micro Devices (AMD) in CPUs and Nvidia in AI accelerators. Its foundry division remains a key concern, posting over $10 billion in losses across 2025, with profitability not expected until 2027 or later.

Intel’s stock has gained over 90% in the past year, though it remains down over five years, reflecting long-term structural challenges. Analysts remain cautious, with most ratings clustered around “Hold.”

Tan described the turnaround as ongoing, noting the company is on a “multiyear journey” toward recovery.

Source: https://www.aol.com/articles/intel-ceo-completed-first-where-124558354.html

Intel Launches Core Series 2 Processor, Expands Edge AI Portfolio

March 12, 2026 - Intel has introduced its new Intel Core Series 2 processors designed for industrial edge workloads, alongside a healthcare-focused Edge AI Suite for Health & Life Sciences. The announcements were made at embedded world 2026 in Nuremberg.

The new processors, built with performance cores (P-cores), are designed for mission-critical edge environments where timing precision and reliability are essential. According to Intel, the platform supports multiple workloads simultaneously, including safety systems, control loops, and real-time analytics.

Intel claims the processors deliver up to 4.4× lower PCIe latency, 2.5× more deterministic response time, and 3.8× better deterministic performance compared with the AMD Ryzen 7 9700X, along with up to 1.5× improvements in multi-thread performance.

The chips target applications such as industrial automation, robotics, and machine vision, where predictable latency is critical.

Alongside the hardware launch, Intel previewed its Edge AI Suite for Health & Life Sciences, which provides reference pipelines and benchmarking tools for AI-powered patient monitoring systems. The suite supports workloads such as ECG arrhythmia detection, remote photoplethysmography, and anonymous 3D visual tracking.

Systems powered by Intel Core Ultra Series 3 processors and Core Series 2 are already available, while the healthcare AI suite is currently accessible in preview on GitHub, with general availability expected in Q2 2026.

Source: https://www.eenewseurope.com/en/intel-introduces-core-series-2-processor-expands-edge-ai-portfolio/

Apple to End Intel App Support in 2027 as macOS 26 Marks Final Update for Intel Macs

February 18, 2026 - Apple has announced that macOS 26 will be the last version to support Intel-based Macs, and Rosetta support for Intel apps will end with macOS 28 in 2027. Businesses relying on Intel-only applications must replace or update them within the next 12–18 months to avoid disruptions. While limited security updates will continue for some older Mac models and select legacy games, Apple is окончing its transition to Apple Silicon after a six-year migration period that began in 2020.

Source: https://www.computerworld.com/article/4133907/apple-to-kill-app-support-for-intel-based-macs-next-year.html

Intel Pulls the Plug on On-Demand Hardware Upgrades, 15 Years After Its Controversial Upgrade Service

February 13, 2026 - Intel has quietly discontinued its pay-as-you-go hardware activation initiative, formerly known as Software Defined Silicon (SDSi) and later rebranded as Intel On Demand. The move became evident after the company archived the SDSi GitHub repository, removed supporting documentation, and stopped issuing related software updates.

The program allowed customers to unlock pre-installed but disabled processor features—such as accelerators and security functions—on select Xeon chips for an additional fee. However, adoption remained limited, with large cloud providers and enterprise buyers resisting extra charges for capabilities already built into the hardware.

The decision echoes Intel’s earlier Intel Upgrade Service from the early 2010s, which was also discontinued after negative reception.

Source: https://www.techradar.com/pro/widely-panned-is-an-understatement-intel-zaps-on-pay-as-you-go-hardware-upgrades-15-years-after-the-infamous-intel-upgrade-service-scheme

Intel Enters GPU Market to Compete with Nvidia’s AI Chip Dominance

February 3, 2026 - At the Cisco AI Summit on Tuesday, Intel CEO Lip-Bu Tan revealed that the company plans to enter the graphics processing unit (GPU) space, challenging Nvidia's dominance in AI and gaming hardware. Traditionally focused on CPUs, Intel’s shift signals a broader transformation aimed at capitalizing on AI trends.

Overseeing the GPU project is Kevork Kechichian, EVP and GM of Intel’s data center group, who joined in September amid a wave of engineering-focused hires. Intel also recently brought on Eric Demers—formerly a senior VP of engineering at Qualcomm—to support the initiative.

Although early in development, Tan stated Intel will shape its GPU roadmap based on customer needs. The move is notable given Tan’s prior emphasis on streamlining Intel’s operations since taking over as CEO last March.

While Nvidia didn’t originate the GPU, its chips now lead the market—especially for AI training and inference tasks—making Intel’s entrance into the space a strategic and potentially high-stakes decision.

Source: https://techcrunch.com/2026/02/03/intel-will-start-making-gpus-a-market-dominated-by-nvidia/

Can Intel Capitalize as TSMC Grapples with AI-Driven Chip Demand Surge?

January 20, 2026 - With demand for AI chips soaring, Taiwan Semiconductor Manufacturing Company (TSMC) has informed major clients such as NVIDIA and Broadcom that it faces capacity constraints at its most advanced manufacturing nodes.

As the world’s largest contract chipmaker, TSMC is under intense pressure amid surging demand from sectors like cloud computing, enterprise applications, and data centers. This development, first reported by The Information, underscores the mounting strain on semiconductor supply chains.

Increased AI adoption has led to fierce competition for advanced chip production. TSMC's cutting-edge facilities are central to this ecosystem, producing top-tier semiconductors for major AI players. Hyperscalers, chipmakers, and system integrators all vie for priority access, creating multi-quarter supply bottlenecks.

Industry analysts note that these delays are prompting customers to evaluate alternative sources. Extended lead times at advanced nodes may slow AI infrastructure rollouts, driving firms to diversify beyond a single foundry.

TSMC Posts Strong Results Amid Supply Pressures

Despite the strain, TSMC’s latest financials reflect robust demand. The company posted a 35% year-over-year profit increase in Q4, setting a record with revenue at US$33.7 billion and net income at US$16.3 billion – its eighth consecutive quarter of profit growth.

High-performance computing, including AI and 5G, accounted for 55% of quarterly revenue. Notably, chips produced using 7nm or smaller nodes contributed 77% of total wafer revenue, indicating a shift toward smaller, faster, and more efficient chip designs.

"We expect our business to be supported by continued strong demand for our leading-edge process technologies," said TSMC CFO Wendell Huang during the earnings call.

For Q1 2026, TSMC forecasts revenue between US$34.6 billion and US$35.8 billion, marking up to 38% growth year-on-year. The company started mass production of 2nm chips in Q4 2025 and plans to ramp up output through 2026. Capital expenditure will rise to between US$52 billion and US$56 billion in 2026, up from US$40.9 billion last year.

Counterpoint Research Senior Analyst Jake Lai told CNBC that 2026 is shaping into a "breakout year" for AI servers, driven by advances in chip production and packaging.

Intel Eyes Opportunity Amid TSMC Constraints

With TSMC facing production limits, Intel is re-emerging as a potential alternative for companies seeking foundry capacity. Though still rebuilding its manufacturing capabilities, Intel doesn’t need to rival TSMC outright to benefit from current market conditions.

Analysts suggest Intel could serve as a pressure release valve in the strained supply chain, offering capacity to firms unable to secure sufficient supply from TSMC. Its U.S.-based facilities align with government priorities and offer geographic diversification, appealing amid ongoing trade tensions.

Intel shares have gained 19% in 2026, boosted by solid performance and growing confidence in its long-term strategy. Investor sentiment strengthened after U.S. President Donald Trump commended Intel’s latest processors following a meeting with CEO Lip-Bu Tan.

NVIDIA has already invested in Intel, and rumors persist that Apple may turn to Intel for some of its chip manufacturing needs.

TSMC Expands Globally, But Faces New Risks

To address the supply crunch, TSMC is building new facilities in Japan, Europe, and the U.S., including a major site in Arizona. CEO C.C. Wei described the Arizona project as a future “gigafab cluster” intended to enhance efficiency and better serve U.S.-based clients.

However, the company warned that international operations would likely yield thinner margins due to higher costs and added complexities. Wei also highlighted shifting global tariff policies as a potential risk factor in 2026.

Beyond AI, the semiconductor sector faces additional uncertainty from memory supply constraints and rising component costs, which could impact demand in consumer markets such as smartphones and PCs. Nevertheless, TSMC maintains that its focus on high-end chip technologies positions it well against broader market volatility.

As AI continues to reshape chip demand, even industry leaders like TSMC are stretched. In the resulting gaps, competitors like Intel see an opening to reassert themselves in the semiconductor race.

Source: https://aimagazine.com/news/tsmc-surging-ai-chip-demand

Intel Unveils Plans for Handheld Gaming Platform with Custom Chip

January 6, 2026 - At CES 2026, Intel announced it is developing a dedicated platform for handheld gaming devices, featuring both hardware and software built on its Core Series 3 “Panther Lake” processors.

These chips are Intel’s first to use the 18A manufacturing process, which entered production in 2025. The upcoming platform will include a custom chip designed specifically for portable gaming, marking a deeper push into the gaming hardware space.

While Intel has long supported PC gaming—especially with its Intel Arc GPUs launched in 2022—this move positions the company against AMD, the current leader in the handheld gaming chip market. AMD also unveiled its Ryzen 7 9850X3D and new gaming tech at CES.

Intel plans to reveal more details about its handheld gaming products later in 2026.

Source: https://techcrunch.com/2026/01/06/intel-is-building-a-handheld-gaming-platform-including-a-dedicated-chip/

Is Intel Secretly Deploying High-NA EUV in Its 18A Node?

January 1, 2026 - Intel might be holding back a critical advantage in its race against TSMC by quietly advancing its 18A node with high-NA EUV lithography. Though the chipmaker has consistently cited its 14A node, expected in 2028, as the debut for high-NA technology, emerging evidence suggests that the 18A node, currently ramping, may already be utilizing the cutting-edge equipment.

High-NA EUV, developed by ASML, represents a leap in lithography capabilities, offering finer resolution (8nm) compared to previous low-NA EUV (13.5nm). The technology reduces process steps, boosting chip yields and efficiency. Intel delayed EUV adoption in the past, allowing TSMC to gain a manufacturing edge. Now, roles may be reversing.

Intel received its first high-NA machine at its Oregon R&D facility in late 2023, achieving "first light" in February 2024. It added a second machine in August 2024 and recently confirmed acceptance testing for ASML's upgraded EXE:5200 tool. Reports suggest Intel secured ASML's full 2024 high-NA output, totaling up to six machines.

Despite this, Intel maintains that high-NA will not be used in manufacturing until 14A. Yet, Intel exec Steve Carson said in early 2025 that the company had high-NA "in production" and that it delivered more efficient processing than low-NA.

Intel claims to be processing 30,000 wafers per quarter with high-NA tools, indicating more than just R&D usage. Additionally, CTO Naga Chandrasekaran revealed in April that yield parity was achieved between low-NA and high-NA on both 18A and 14A nodes.

Clues continue to emerge. At Intel's Fab 52 in Arizona, set for 18A production, journalists reported seeing undisclosed tools during tours. Intel has avoided confirming HNA use, possibly to keep a competitive edge or to manage expectations.

Even if deployed, high-NA may only be used on select chip layers or specific products. CNBC footage showed low-NA tools in Fab 52, and it's rumored that HNA might be reserved for 18AP, a future 2026 variant of 18A.

With Intel set to unveil its first 18A-based chip, Panther Lake, at CES, the question remains: is Intel's 18A already benefiting from high-NA EUV? The answer may not be disclosed, but the implications for the semiconductor landscape are significant.

Source: https://www.fool.com/investing/2026/01/01/is-intel-keeping-a-wonderful-secret-from-the-marke/

Intel Accuses Former Engineer of Stealing 'Top Secret' Files Post-Termination

November 7, 2025 - Intel has filed a lawsuit alleging that a former software engineer, Jinfeng Luo, accessed and downloaded thousands of sensitive documents, many labeled as "Top Secret," shortly after being notified of his termination.

According to the complaint filed in Washington federal court last week, Luo, a Seattle resident, had been employed at Intel since 2014. The tech giant informed him on July 7 that his employment would officially end on July 31.

While Intel did not specify the reason behind Luo's dismissal, the company had announced a major workforce reduction last summer, eliminating over 15,000 jobs globally in an effort to streamline operations and reduce costs.

Intel claims that on July 23, Luo attempted to transfer files from his company-issued laptop to an external drive, but internal security protocols blocked the action. However, five days later, he allegedly succeeded in downloading approximately 18,000 files using another storage device.

This unauthorized transfer reportedly triggered an internal investigation. Intel said it spent several months trying to contact Luo at his Seattle residence and two other locations linked to him, including an address in Portland, but received no response.

The company is now pursuing legal action, seeking a minimum of $250,000 in damages, reimbursement for legal fees, and a court order to prevent Luo from sharing any proprietary information.

Intel has declined to comment on the pending litigation, and Luo could not be reached for a response. Law360 was the first to report on the lawsuit earlier this week.

Source: https://www.oregonlive.com/silicon-forest/2025/11/intel-says-software-engineer-took-top-secret-documents-after-getting-fired.html

Intel Debuts First 18A-Based Processor with Panther Lake Launch

October 9, 2025 - Just six months into Lip-Bu Tan’s tenure as CEO, Intel has unveiled a major leap forward in hardware technology aimed at reviving the company’s competitive edge.

On Thursday, Intel introduced a new processor, codenamed Panther Lake, representing the latest generation of the Intel Core Ultra lineup. Notably, it is the first chip built using Intel’s 18A semiconductor process, a milestone for the company’s fabrication capabilities.

The new processors are scheduled to ship later in 2025 and are being manufactured at Fab 52 in Chandler, Arizona, a facility that began operations earlier this year.

“We are entering an exciting new era of computing, made possible by great leaps forward in semiconductor technology that will shape the future for decades to come,” said Tan in a company statement. “Our next-gen compute platforms, combined with our leading-edge process technology, manufacturing, and advanced packaging capabilities, are catalysts for innovation across our business as we build a new Intel.”

In addition to Panther Lake, Intel also provided an early look at Xeon 6+, codenamed Clearwater Forest, which is the first 18A-based server processor. The company anticipates a launch in the first half of 2026.

This announcement marks Intel’s most significant manufacturing development since Tan assumed leadership in March. At the time, he signaled a strategic realignment focused on core competencies and a renewed emphasis on engineering excellence.

The company’s statement also underscored the strategic importance of the 18A process being developed within the U.S., calling it the most advanced chip manufacturing process produced domestically.

“The United States has always been home to Intel’s most advanced R&D, product design, and manufacturing — and we are proud to build on this legacy as we expand our domestic operations and bring new innovations to the market,” Tan added.

The announcement follows a major policy milestone: in August, the U.S. government acquired a 10% equity stake in Intel, a move that came shortly after a White House meeting between Tan and President Donald Trump to explore ways the company and federal government could collaborate to bolster domestic semiconductor production.

Intel did not provide further details when contacted, but confirmed the corrected timeline for the Fab 52 facility's operational launch.

Source: https://techcrunch.com/2025/10/09/intel-unveils-new-processor-powered-by-its-18a-semiconductor-tech/

Intel Undergoes Major Leadership Reshuffle as Product Chief Steps Down

September 8, 2025 - Intel is continuing its executive shake-up under new CEO Lip-Bu Tan, who took over the role in March.

On Monday, the semiconductor giant announced the departure of Michelle Johnston Holthaus, a more than 30-year veteran of the company. Most recently serving as chief executive of Intel Products, Holthaus will transition to a role as strategic adviser.

The company also unveiled plans to establish a centralized engineering division aimed at expanding its custom silicon services for external clients. Srinivasan "Srini" Iyengar, who joined Intel from Cadence Design Systems in July, will lead the new group.

Additionally, Intel named Kevork Kechichian—formerly with ARM—as the new head of its data center business. Jim Johnson has been promoted to senior vice president and general manager of Intel’s client computing division. Naga Chandrasekaran, CTO and COO of Intel Foundry, will also assume broader responsibilities within the organization.

"With Srini leading Central Engineering, we're aligning innovation and execution more tightly in service to customers," CEO Tan stated in a company press release. "We are laser-focused on delivering world-class products and empowering our engineering teams to move faster and execute with excellence. Kevork, Jim, and Srini are exceptional leaders whose deep technical acumen and industry relationships will be instrumental as we continue building a new Intel."

The leadership overhaul follows recent news that the U.S. government plans to convert its existing grants into a 10% equity stake in Intel. The agreement includes a clause to penalize Intel should its ownership in the foundry unit drop below 50%.

These are not the only executive changes Intel has made this year. In July, the company announced four new hires in sales and engineering, including Greg Ernst, who now serves as Intel's chief revenue officer.

Source: https://techcrunch.com/2025/09/08/intels-chief-executive-of-products-departs-among-other-leadership-changes/

Why the U.S. Government Is Acquiring an Equity Stake in Intel

September 3, 2025 - The Trump administration is driven by its ambition to make the United States the global leader in artificial intelligence—and one crucial component of that strategy involves shifting semiconductor manufacturing back within national borders. To accelerate this push, President Trump has recently signaled proposed tariffs and other policies to encourage U.S.-based chip production.

In a groundbreaking move in late August, the administration transformed an existing federal grant—designed to bolster domestic chip manufacturing—into a 10% equity stake in Intel. The terms of the agreement include a provision granting the U.S. government additional shares if Intel’s control of its foundry business (which produces chips for global clients) falls below 50% within the next five years.

While Intel is not the only U.S.-based or internationally active semiconductor firm, it has clearly emerged as the focal point in the administration’s plan for AI supremacy. Let’s examine how Intel arrived in this prominent role.

Foundry Background

Intel launched its foundry arm in March 2021, pledging $20 billion toward constructing two new chip‑manufacturing plants in Arizona. The following year, it attempted a $5.4 billion acquisition of Tower Semiconductor, a custom foundry specialist—yet the deal collapsed in August 2023 over regulatory concerns.

Since then, Intel Foundry has struggled to gain traction; reports suggest it failed to attract major customers. In 2024, CEO Pat Gelsinger revealed steps were being taken to spin the business off as an independent subsidiary, amid mounting pressure from the board as Intel grappled with sluggish growth, cost-cutting efforts, and large-scale layoffs.

A potential lift appeared in November 2024, when Intel secured $7.86 billion in federal grants via the 2022 CHIPS and Science Act, aimed at strengthening U.S. semiconductor production. Yet, by December, Gelsinger abruptly retired.

Lip‑Bu Tan Returns

In March, Intel appointed former board member Lip‑Bu Tan as CEO, immediately launching a turnaround plan focused on redefining business priorities, shedding non-essential units, and cutting headcount. By July, Intel announced pauses in certain manufacturing ventures, including delays to a planned $28 billion fab in Ohio.

Government Intervention

On August 6, Senator Tom Cotton raised concerns in a letter to Intel’s board regarding Tan’s China ties and his long leadership at Cadence Design Systems—which had been cited in export control violations. The next day, President Trump demanded Tan’s immediate resignation, citing conflict, though no evidence was provided.

By the following week, Tan met with Trump in Washington, D.C., setting the stage for deeper collaboration. Rumors soon emerged that the U.S. government might seek an equity role in Intel.

On August 18, SoftBank announced a $2 billion investment in Intel. Just four days later, the deal with the U.S. government was confirmed.

Deal Terms

The agreement allows Intel to receive the funding it was already granted—but in exchange, the government becomes an investor that pledges to support Intel’s direction. This move aims to preserve Intel’s commitment to domestic chip production and foundry investment.

Source: https://techcrunch.com/2025/09/03/why-the-us-government-is-taking-a-stake-in-intel/

Intel is spinning off its Network and Edge group

July 25, 2025 - Intel is set to spin off its Network and Edge group, a division focused on developing semiconductor solutions for the telecommunications sector, according to an initial report by CRN. The move is part of Intel's broader effort to streamline its operations.

The chipmaker will retain a stake as an anchor investor in the newly independent company and will also seek additional outside funding to support the venture.

In May, reports emerged that Intel was exploring a potential sale of the Network and Edge group. The unit generated $5.8 billion in revenue in 2024.

This planned spinout echoes Intel’s earlier decision this month to divest its RealSense business, which specialized in stereoscopic imaging technology. RealSense was separated during former CEO Pat Gelsinger’s leadership and later launched independently with $50 million in venture backing.

TechCrunch has contacted Intel for further details regarding the timeline and specifics of the spinout.

Source: https://techcrunch.com/2025/07/25/intel-is-spinning-off-its-network-and-edge-group/

Intel Scales Back Manufacturing Projects Under New CEO Lip-Bu Tan

July 24, 2025 - Intel is continuing to scale back its manufacturing footprint as part of a broader push to streamline operations and cut inefficiencies under new CEO Lip-Bu Tan.

In its second-quarter earnings report released Thursday, the semiconductor leader announced it will cancel or delay several manufacturing initiatives. Notably, Intel confirmed it will not proceed with its previously unveiled projects in Germany and Poland. These included a planned chip manufacturing facility in Germany and an assembly and testing plant in Poland—both of which have remained on hold since 2024, shortly after their announcement.

The company also revealed plans to consolidate its testing operations in Costa Rica, shifting those functions to existing facilities in Vietnam and Malaysia.

“Unfortunately, the capacity investment we make over the last several years were well ahead of demand and were unwise and excessive,” Tan said during the Q2 earnings call. “Our factory footprint has become needlessly fragmented. Going forward, we will grow our capacity based solely on the volume commitments and deploy capex lockstep with the tangible milestones, and not before.”

Additionally, Intel disclosed it will further delay construction of its $28 billion chip fabrication plant in Ohio. Originally slated to open in 2025, the project had already faced a delay in February this year.

This marks the first full quarter with Tan at the helm since he took over as CEO on March 12. Since stepping into the role, Tan has prioritized eliminating inefficiencies by divesting noncore assets and simplifying internal structures.

“We have much work to do in building a clean and streamlined organization, which we have started in earnest, and it remain an area of focus for me during Q3,” Tan stated. “Our goal is to reduce inefficiencies and redundancies and increase accountability at every level of the company.”

Intel also provided an update on its workforce reductions. The company now plans to end 2025 with 75,000 employees, reflecting a 15% cut. According to Tan, recent layoffs have helped eliminate 50% of the management layers. At the close of 2024, Intel employed 108,900 people, down from 124,800 at the end of 2023.

An internal memo in June revealed further cuts in the Intel Foundry business, with 15% to 20% of its workforce affected. This unit focuses on producing chips for external customers.

Source: https://techcrunch.com/2025/07/24/intel-continues-to-pull-back-on-its-manufacturing-projects/