A Call for Action in American Chip Manufacturing

In a fierce plea for revitalizing Intel and the nation’s chip industry, former CEO Craig Barrett has unveiled a rescue blueprint that emphasizes immediate action and investment. The landscape is dire as rivals like Samsung and TSMC show no intentions of establishing advanced manufacturing facilities in the U.S. anytime soon.

Urgent Need for Second Sources

Major American tech giants—think Nvidia, Apple, and Google—must recognize the pressing need for alternative sources of semiconductor manufacturing. This shift is crucial for ensuring price competitiveness, geographic stability, and overall supply chain security.

Intel's Financial Hurdles

Strapped for cash, Intel requires an estimated $40 billion to remain competitive, especially against powerhouses like TSMC. With the potential funding of the CHIPS Act not nearly enough, the future looks bleak unless significant investments are made.

The Power of Customer Investment

Barrett posits that the key to saving Intel lies with its financially robust customers. If just eight major clients forked over $5 billion each, Intel might reclaim its footing in the chip market. But skepticism abounds regarding the company’s current leadership strategies.

Technology Leadership is Key

The hesitation from current Intel executives to advance new technologies without customer commitments is unrealistic. Barrett emphasizes that true innovation and leadership in the semiconductor space require bold moves, not cautious follow-ups.

Opportunities for Investment and Tariffs

Intel commands impressive technology, including high NA EUV and backside power enhancements, positioning it for potential leadership, but only with immediate investment. Customers must weigh the benefits of domestic supply against the risks of relying solely on foreign entities like TSMC. A potential tariff on imported semiconductors could further incentivize this shift.

Divisions and Debates: The Future of Intel

The push to split Intel into smaller companies continues to echo among former board members, but Barrett argues this would only complicate efforts to reclaim its competitive edge. The focus should remain on securing vital investments and fostering partnerships that enhance national security.

A Call to Action for Leadership

Barrett urges the Biden administration and Department of Commerce to pave the way for these necessary transformations within Intel. With customer commitment, active board participation, and government support, the narrative around Intel could shift from crisis to a compelling comeback.