CNBC AI News, August 12th – Once the undisputed titan of the semiconductor industry, Intel has faced considerable headwinds in recent years. CEO Pat Gelsinger, who took the helm in a bid to revitalize the company, has navigated a series of challenges, reportedly even requiring a Presidential intervention to secure his position.
With Gelsinger staying put, the challenges ahead for Intel remain formidable. The mission: to restore the 50-plus-year-old American semiconductor leader to its former glory, particularly in the realm of advanced manufacturing processes.
Enter Craig Barrett, former Intel CEO, who has publicly weighed in on the company’s future in a series of recent articles in the U.S. media.
For those unfamiliar, Barrett served as Intel’s CEO from 1998, becoming the fourth CEO after the company’s three founders. His tenure is perhaps best remembered for his public apology in 2004 when Intel missed its deadline for the 4GHz Pentium 4 processor – a gesture that became a notable, if unconventional, moment in tech history.
Barrett’s deep-seated affection for Intel is evident in his articles, which differ significantly from the typical Wall Street analysis. He argues emphatically that Intel’s survival is not just desirable, but essential for the U.S. He believes that Intel is uniquely positioned to provide advanced chip manufacturing on American soil. According to Barrett, companies like Samsung and TSMC are unlikely to bring their most cutting-edge technologies stateside.
Regarding the revitalization strategy, Barrett pinpoints underinvestment as the core issue. He estimates that achieving technological parity with a foundry like TSMC requires an investment of at least $40 billion, significantly exceeding the subsidies provided by the U.S. CHIPS Act.
Barrett proposes a novel solution: a collective investment from Intel’s eight largest customers, including tech giants like Apple, Google, and NVIDIA. Each company would contribute $5 billion, securing a reliable supply of American-made chips, along with the advantage of potentially lower prices compared to Asian competitors.
Beyond the financial injection, Barrett advocates for specific technological investments, urging immediate adoption of High NA EUV lithography and backside power delivery technologies. He also suggests implementing tariffs on imported chips to stimulate domestic demand.
Some of Barrett’s proposals already align with existing strategies. The U.S. has already implemented tariffs on certain imported goods, and Intel has heavily invested in High NA EUV lithography for several years. Furthermore, backside power delivery is slated for production in Intel’s upcoming 18A process.
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