New CEO Pat Gelsinger takes the helm at Intel! Promises to uphold the wafer foundry outsourcing plan to reverse the disadvantages and challenge TSMC and NVIDIA's market positions

Recently, Intel, the US semiconductor giant, welcomed its new CEO, Lip-Bu Tan, and on his first day in office on 3/12, he addressed employees in a public letter, stating that he will continue the foundry project of the former CEO, Pat Gelsinger. Although some investors believe that this project could put significant financial or operational pressure on the company, Lip-Bu Tan emphasized that Intel will strive to restore its former glory and become a world-class chip supplier and foundry.

Can Intel foundry turn the tide to challenge TSMC

Intel has been operating in a 'self-production and self-sales' model for decades, integrating chip design and manufacturing. However, in recent years, TSMC has gained overwhelming advantages in the wafer foundry field, producing the most advanced chips for major companies such as Nvidia, Apple, and AMD, putting Intel under unprecedented competitive pressure.

Intel's plan to transform the foundry market requires a large amount of capital, which has already led to a loss of 19.2 billion US dollars for the company last year. This is also one of the main reasons why former CEO Gelsinger was removed by the board. However, the new CEO has decided to continue with this strategy and try to make Intel a significant competitor in the global semiconductor foundry market.

Will Intel split its wafer foundry business, investors are still waiting and seeing

According to Bloomberg, market analyst Srini Pajjuri pointed out that whether Intel will split its wafer foundry business is still a crucial question. If Intel continues to maintain its current structure, it needs to prove that it can produce more competitive products; otherwise, the stock price may still face pressure.

In addition, the Trump administration once proposed that TSMC assist Intel in splitting off its OEM business, but TSMC recently announced that it will spend $100 billion to expand its own wafer fab, indicating no intention to support Intel's plan.

The US government's subsidies cannot save Intel, and Ohio's expansion plan has been postponed.

In recent years, Intel has been actively expanding its factories, especially its wafer fab in Ohio, (Ohio), USA, which was originally planned to be one of the world's largest semiconductor manufacturing bases. However, the project is currently delayed until after 2030, partially due to Intel's receipt of an $8 billion subsidy in the U.S. chip act, which requires specific production goals to be met. However, Intel's current progress is far below expectations.

In addition, Trump recently raised questions about the chip bill, adding another variable to Intel's government subsidy program. Analysts believe that Intel may slow down its expansion plans and wait for the market demand to recover before deciding whether to increase production.

AI chip competition is fierce, Intel still lags behind NVIDIA

Despite Intel's active promotion of the 18A process technology, the company still lags far behind Nvidia in the AI chip market. Market analysts believe that Intel currently "lacks an AI narrative," meaning there is no clear strategy to compete in the AI chip market, which will impact its future market competitiveness.

Intel's new CEO, Pat Gelsinger, has successfully led the transformation of electronic design automation software company Cadence Design Systems, so there is still some confidence in his ability to drive technological progress. However, Intel will still face challenges such as competition in wafer foundry, AI chip layout, and huge production costs in the future.

Can Intel emerge from the downturn, the market waits and sees

Intel's influence in the global semiconductor market is undeniable, but facing strong competition from TSMC and NVIDIA, coupled with the high investment cost of the foundry business, the company's future direction still remains uncertain. Assuming Intel chooses to spin off its foundry business, it may be able to alleviate financial burden and focus on developing its own chips. However, if it continues to adhere to the foundry strategy, it will need to rapidly improve its process technology and attract more customers to prove its market competitiveness.

The market is still watching Intel's future development, and whether the new CEO, Pat Gelsinger, can lead the company to turn the tide will be the key to Intel's growth in the coming years.

( Trump threatens to terminate the 'chip act' 52 billion subsidy! TSMC, Intel, Samsung, and other 20 major manufacturers may be affected )

This article Intel's new CEO Pat Gelsinger took office! Promising to uphold the wafer foundry project to reverse the disadvantages and challenge TSMC and NVIDIA's market positions first appeared on Chain News ABMedia.