Manufacturing for Other Developers Intel CEO Remains Committed to Chip Manufacturing Despite Crisis

Source: dpa 1 min Reading Time

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The new Intel CEO Lip-Bu Tan remains committed to the ambitious plans for the chip manufacturing of the struggling semiconductor pioneer. He wants to make the Intel Foundry division a success, said the manager, who has been in office for only about five weeks.

Intel CEO Lip-Bu Tan wants to stick to the ambitious plans for chip manufacturing.(Image: Intel)
Intel CEO Lip-Bu Tan wants to stick to the ambitious plans for chip manufacturing.
(Image: Intel)

Pat Gelsinger, predecessor of the current Intel CEO Lip-Bu Tan, had initiated the project to make Intel a contract manufacturer for other chip developers as well. After setbacks in the plan, however, Gelsinger had to step down in December.

Intel recently introduced the chip company Mediatek as a customer of its contract manufacturing for a new production process at an event in San Jose. There are also interested parties for the next manufacturing technologies, it was said. Intel sees innovations in chip design as a potential trump card in competition with established rivals like the world's largest contract manufacturer, TSMC.

After the shock of chip shortages during the Corona pandemic, the USA under then-President Joe Biden and the European Union decided to bring more semiconductor manufacturing back to the West with the incentive of billions in subsidies. Intel benefited from this with significant commitments both in the USA and for the now shelved plant in Magdeburg, Germany.

Donald Trump, on the other hand, criticized the subsidies as a waste of money and wants to force providers to manufacture more chips in the USA using tariffs. Lip-Bu Tan expressed he was "very pleased" that the Trump administration has made production in America a priority.

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