At a technology conference in San Jose, California, Intel announced its ambitious plans to regain dominance in the semiconductor industry by surpassing its main competitor, Taiwan Semiconductor Manufacturing Co (TSMC).
The chipmaker revealed that Microsoft intends to utilise its services to manufacture a custom computing chip, marking a significant step in Intel’s efforts to secure substantial foundry orders.
With the unveiling of its Intel 18A manufacturing technology, the company aims to reclaim the title of producing the world’s fastest chips from TSMC, with plans to extend this lead into 2026 with the introduction of Intel 14A.
Intel’s CEO, Pat Gelsinger, who set the deadline of 2025 to reclaim the chipmaking crown when he assumed leadership three years ago, expressed confidence in the company’s trajectory.
This strategic move not only highlights Intel’s determination but also underline its readiness to leverage cutting-edge technologies to meet evolving market demands.
For decades, Intel maintained its position by exclusively producing chips for itself, leveraging its advanced manufacturing capabilities to lead the industry in performance.
However, the loss of this manufacturing edge led to declining competitiveness and margins, necessitating a revitalisation effort. Recognising the importance of innovation and external partnerships, Intel is banking on substantial investments from the US government and collaborations with diverse customers to fuel its resurgence. By diversifying its clientele and expanding its geographical presence, Intel aims to offer an attractive alternative to TSMC’s concentrated manufacturing facilities in Taiwan.
Stu Pann, the executive overseeing Intel Foundry, emphasised the appeal of Intel’s geographic diversity, stating, “It’s a sales pitch that’s resonating right now. People want that.”
Intel’s outreach to potential customers extends beyond promises of technological prowess, aiming to provide a compelling value proposition encompassing reliability and accessibility.
While the identity of Intel’s four “large” customers for its 18A manufacturing technology remains undisclosed, the collaboration with Arm Holdings and academic institutions like the University of California Berkeley and the University of Michigan underscores Intel’s commitment to fostering innovation and knowledge sharing.
Intel’s collaboration with Arm Holdings signifies its openness to integrating diverse technologies into its manufacturing processes, potentially expanding its market reach.
Moreover, the partnership with leading academic institutions underscores Intel’s commitment to nurturing talent and fostering technological advancements. As Intel ventures into uncharted territory, analysts remain cautiously optimistic about the company’s turnaround prospects.
Ben Bajarin, chief executive of consulting firm Creative Strategies, acknowledges the significance of Intel’s efforts to attract external customers but underscores the need for patience in assessing their effectiveness.
(With inputs from Reuters)
