Why Intel is late to the AI game
- Intel is investing nearly $30 billion to construct two semiconductor plants in Chandler, Arizona, to implement the new 18A chipmaking process.
- The company is currently negotiating with 12 potential customers for its new chip manufacturing business, aiming for meaningful revenue by 2027.
- Gelsinger's leadership and this strategic investment are crucial for reversing Intel's decline and reestablishing its position in the AI chip market.
In the United States, Intel's CEO Pat Gelsinger is making significant moves to revitalize the company, which has seen a decline in its market position, particularly against rival AMD. The company is investing nearly $30 billion to build two advanced semiconductor manufacturing plants in Chandler, Arizona, which will utilize the new 18A chipmaking process. This strategic shift aims to enhance manufacturing capabilities and establish Intel as a competitive player in the AI chip market. Gelsinger has acknowledged the company's struggles, citing stagnant revenue growth and high operational costs. Intel is currently negotiating with 12 potential customers for its new chip manufacturing business, with expectations of generating meaningful revenue by 2027. The company's recent drop in the Fortune 500 rankings highlights the urgency of these efforts, as Gelsinger's leadership is seen as pivotal for Intel's future success.