Articles tagged with "Intel"
Intel veteran Sanjay Natarajan on Moore's Law and the limits of digital scaling
Sanjay Natarajan, a veteran semiconductor engineer and former Senior Vice President at Intel, challenges the notion that Moore’s Law has reached an absolute end. With a career spanning over three decades, including leading Intel’s critical 32-nanometer and 14-nanometer process technology developments, Natarajan witnessed and contributed to overcoming the escalating challenges of chip scaling such as rising costs, physical limitations, and manufacturing complexities. His work consistently focused on extending performance and yield by adopting fundamentally new approaches for each successive technology node, demonstrating that the evolution of semiconductor technology is an ongoing process rather than a halted one. Natarajan’s passion for electrical engineering began early, inspired by the emergence of personal computing and hands-on experience with an Apple II Plus. His long tenure at Intel was driven not only by the intellectual challenges and innovation opportunities but also by the impact of seeing his work widely adopted globally. He credits Intel’s leadership in CMOS technology and its collaborative environment as key factors in his sustained motivation.
semiconductorsMoore's-Lawchip-scalingprocess-technologyIntelnanometer-technologysemiconductor-manufacturingA timeline of the US semiconductor market in 2025
The U.S. semiconductor industry experienced significant developments throughout 2025, marked by leadership changes, government interventions, and shifting international trade dynamics. Nvidia emerged as a dominant player, reporting record revenues driven largely by its data center business, and securing a non-exclusive licensing deal with chip maker Groq, including hiring Groq’s founder and acquiring $20 billion in assets. Despite challenges, Nvidia also navigated complex regulatory environments, including a reversal by the U.S. Department of Commerce allowing it and AMD to export advanced AI chips to China, although China imposed restrictions on domestic companies purchasing Nvidia chips and ruled that Nvidia violated antitrust laws related to a past acquisition. Intel made notable strides with the announcement of its Panther Lake processor, built on its advanced 18A semiconductor process and produced exclusively at its Arizona fab. The company also underwent leadership changes shortly after the U.S. government took an equity stake in Intel’s foundry program, a move aimed at securing domestic chip production amid tariff rumors and geopolitical tensions.
semiconductorsAI-chipsNvidiaIntelchip-manufacturingsemiconductor-industrytechnology-tariffsWith an Intel recovery underway, all eyes turn to its foundry business
Intel reported a strong third-quarter performance, surpassing Wall Street expectations with $13.7 billion in revenue and a net income of $4.1 billion, a significant turnaround from a $16.6 billion loss in the same period last year. This improvement was driven by revenue growth, substantial cost-cutting measures including layoffs, and major investments from Softbank, Nvidia, and the U.S. government. Intel also bolstered its financial position by divesting non-core assets, such as selling its hardware division and an autonomous driving technology company, raising billions to support its turnaround efforts. CEO Lip-Bu Tan emphasized that these actions have strengthened Intel’s balance sheet and operational flexibility, positioning the company for continued strategic execution. Despite the positive quarterly results, Intel provided limited details on the future of its foundry business, which manufactures custom chips and has struggled since its inception. The foundry segment is a key focus for Tan and is supported by the U.S. government’s investment, which includes conditions for
semiconductorsIntelfoundry-businesschip-manufacturingenergy-efficient-chipstechnology-investmentautonomous-driving-technologyNVIDIA invests $5B in Intel, launches joint AI and PC chip venture
NVIDIA is investing $5 billion in Intel, becoming one of its largest shareholders and forming a strategic partnership to jointly develop future data center and PC chips. This collaboration aims to combine Intel’s x86 CPU architecture with NVIDIA’s AI and GPU technologies, with Intel building custom CPUs for NVIDIA’s AI infrastructure and manufacturing x86 system-on-chips integrated with NVIDIA RTX GPU chiplets for high-performance personal computers. The deal provides a significant boost to Intel, which has struggled in recent years, as evidenced by a 23% surge in its stock price following the announcement. The partnership leverages the strengths of both companies: Intel’s foundational x86 architecture, manufacturing capabilities, and advanced packaging, alongside NVIDIA’s AI leadership and CUDA architecture. Analysts view NVIDIA’s involvement as a pivotal moment for Intel, repositioning it from an AI laggard to a key player in AI infrastructure. The collaboration also has competitive implications, potentially challenging rivals like AMD and TSMC, which currently manufactures NVIDIA’s top processors. The
semiconductorsAI-chipsNVIDIAInteldata-centersPC-processorsAI-infrastructureA timeline of the US semiconductor market in 2025
The U.S. semiconductor market in 2025 has experienced significant developments amid geopolitical tensions and industry shifts, largely driven by the strategic importance of AI chip technology. Nvidia reported a record quarter in August, with a notable 56% year-over-year revenue growth in its data center business, underscoring its strong market position despite broader industry turmoil. Meanwhile, Intel underwent major changes: the U.S. government took an equity stake in the company’s foundry program to maintain control, and Japanese conglomerate SoftBank also acquired a strategic stake. Intel further restructured by spinning out its telecom chip business and consolidating operations to improve efficiency, including halting projects in Germany and Poland and planning workforce reductions. Political dynamics have heavily influenced the semiconductor landscape. President Donald Trump announced potential tariffs on the industry, though none had been implemented by early September, and publicly criticized Intel CEO Lip-Bu Tan amid concerns over Tan’s ties to China. Tan met with Trump to discuss Intel’s role in revitalizing U.S
materialssemiconductorAI-chipsIntelNvidiachip-manufacturingtechnology-industryWhy the US government is taking a stake in Intel
The Trump administration aims to establish U.S. dominance in artificial intelligence by revitalizing domestic semiconductor manufacturing, a critical component for AI technology. To support this goal, the administration converted a government grant intended for semiconductor manufacturing into an equity stake in Intel, contingent on Intel maintaining majority ownership of its foundry business over the next five years. Intel’s foundry unit, which manufactures custom chips, has faced challenges including regulatory setbacks, leadership changes, and strategic uncertainty since its 2021 launch and subsequent failed acquisition attempts. Former Intel board member Lip-Bu Tan briefly returned in early 2025 with a turnaround plan focused on refocusing the company and workforce, but his ties to China raised concerns among U.S. lawmakers, leading to his abrupt resignation. Shortly afterward, Intel secured a significant investment from SoftBank and finalized the U.S. government’s deal, which positions the government as a passive investor aligned with Intel’s interests. This unprecedented move reflects the administration’s commitment to reshoring semiconductor manufacturing, though questions
semiconductorschip-manufacturingIntelU.S.-governmentAI-technologydomestic-manufacturingsupply-chainThe Trump administration’s big Intel investment comes from already awarded grants
The Trump administration announced an $8.9 billion investment in Intel, which the company described as government funds previously awarded but not yet disbursed, rather than new funding. This amount includes $5.7 billion from the Biden administration’s CHIPS Act and $3.2 billion from the Secure Enclave program. Despite President Trump’s claim that the U.S. paid nothing for these shares and his characterization of the deal as beneficial for both America and Intel, the funds are essentially government grants being converted into equity. Trump has been critical of the CHIPS Act and urged House Speaker Mike Johnson to repeal it. Intel had already received $2.2 billion in CHIPS Act funding and requested an additional $850 million reimbursement that had not yet been paid. Some legal experts question whether the CHIPS Act permits the government to convert grants into equity, suggesting potential legal challenges to the deal. Trump also previously accused Intel CEO Lip-Bu Tan of conflicts of interest, though he later praised Tan for negotiating
materialssemiconductorchip-manufacturingCHIPS-ActIntelgovernment-grantstechnology-investmentU.S. government plans to take a 10% stake in Intel
The U.S. government plans to acquire a 10% ownership stake in Intel, as announced by President Donald Trump on August 22, 2025. Intel has agreed to the proposal, which caused the company’s stock to rise by over 7%. This move is notable because government equity stakes in private companies are rare in the U.S., typically reserved for extraordinary circumstances such as the 2008-2009 financial crisis. The investment comes amid Intel’s ongoing restructuring under CEO Lip-Bu Tan, who is focusing the company on core businesses and addressing competitive pressures from rivals like Nvidia. This government investment follows a recent deal in which Japanese conglomerate SoftBank agreed to purchase Intel common stock at $23 per share, signaling international confidence in Intel’s role in advanced technology and semiconductors. The government’s stake is expected to be officially announced shortly after the SoftBank deal. This marks a significant shift in U.S. policy, reflecting heightened federal interest in supporting domestic semiconductor manufacturing and technology leadership
energysemiconductorstechnology-investmentIntelgovernment-stakeadvanced-technologychip-manufacturingSoftBank makes $2B investment in Intel
Japanese conglomerate SoftBank has agreed to invest $2 billion in Intel by purchasing common stock at $23 per share, signaling a strong commitment to advanced semiconductor technology and manufacturing in the United States. The deal, announced after market hours on August 18, 2025, led to a more than 5% increase in Intel’s share price. SoftBank Group Chairman and CEO Masayoshi Son emphasized that the investment reflects confidence in the expansion of U.S.-based semiconductor manufacturing, with Intel playing a pivotal role, especially amid growing interest in AI chip development. This investment serves as a significant validation for Intel, which has faced competitive pressures from companies like Nvidia and is currently undergoing a restructuring under new CEO Lip-Bu Tan. Intel is focusing on streamlining its semiconductor business, particularly its client and data center segments, while reducing workforce in its Intel Foundry division. The deal also aligns with SoftBank’s renewed focus on the U.S. market and AI technologies, complementing its recent activities such
semiconductorsAI-chipsIntelSoftBankadvanced-technologysemiconductor-manufacturingdata-centersU.S. government is reportedly in discussions to take stake in Intel
The U.S. government, under the Trump administration, is reportedly in talks to acquire a stake in semiconductor company Intel. This potential investment aims to support Intel’s expansion of its manufacturing capabilities within the United States. The discussions follow concerns raised by Republican Senator Tom Cotton regarding Intel board member Tan’s alleged connections to China, which prompted scrutiny from the administration. These developments come shortly after President Trump took unspecified actions related to Intel, possibly influenced by perceived conflicts of interest. A meeting between Intel and government officials intended to address these concerns reportedly led to the idea of the government taking a direct ownership position in the company. Further details from Intel have not been disclosed, and the situation remains evolving.
materialssemiconductormanufacturingIntelU.S.-governmenttechnologychip-industryA timeline of the US semiconductor market in 2025
The U.S. semiconductor industry in 2025 has experienced significant upheaval amid the intensifying global AI competition. Intel, under new CEO Lip-Bu Tan, focused on restructuring and efficiency, canceling projects in Germany and Poland, consolidating test operations, and planning substantial layoffs of up to 20% in certain units. Intel also made key leadership hires to pivot back to an engineering-driven approach. Meanwhile, AMD expanded its AI hardware capabilities through acquisitions, including companies specializing in AI inference chips and software adaptation to compete more directly with Nvidia’s dominance. On the policy front, the Trump administration introduced an AI Action Plan emphasizing chip export controls and allied coordination, though specific restrictions remained undefined. Nvidia faced challenges due to U.S. export licensing requirements on AI chips, leading the company to exclude China-related revenue from forecasts and file applications to resume chip sales there, including launching a China-specific RTX Pro chip. The U.S. also grappled with national security concerns over AI chip sales to the UAE and
semiconductorsAI-chipsIntelNvidiachip-export-controlssemiconductor-industryrare-earth-elementsIntel continues to pull back on its manufacturing projects
Intel CEO Pat Gelsinger is advancing a restructuring plan aimed at reducing inefficiencies by scaling back several manufacturing projects. In its Q2 earnings report, Intel announced it will cancel previously planned chip manufacturing facilities in Germany and Poland, including an assembly and testing site in Poland and a chip factory in Germany, both of which had been on hold since early 2024. The company also plans to consolidate test operations in Costa Rica by shifting them to Vietnam and Malaysia. Gelsinger acknowledged that prior capacity investments were excessive and poorly aligned with demand, leading to a fragmented factory footprint. Moving forward, Intel intends to expand capacity only based on confirmed volume commitments and tie capital expenditures to clear milestones. Additionally, Intel will further delay its $28 billion chip factory in Ohio, originally slated to open in 2025. This announcement coincides with Gelsinger’s first full quarter as CEO, during which he emphasized streamlining operations by divesting non-core units and eliminating redundancies. The company has already reduced its
semiconductorschip-manufacturingIntelmanufacturing-projectsfactory-consolidationsemiconductor-industryproduction-capacityUS chipmakers could see bigger tax credits if Trump’s spending bill passes
The Trump administration’s current spending bill, known as the “Big, Beautiful Bill,” includes a provision that could significantly increase tax credits for semiconductor manufacturers building plants in the U.S. The bill, which has already passed the Senate, proposes raising the tax credit from 25% to 35%. This enhanced credit aims to incentivize companies like Intel, TSMC, and Micron Technology to expand their domestic manufacturing capabilities. This potential tax boost comes at a critical time for the semiconductor industry, which has faced challenges due to recent export restrictions on advanced AI chips to China. The increased tax credit could help offset some of the difficulties caused by these trade limitations and support the growth of U.S.-based chip production. However, the final impact depends on whether the spending bill passes in its current form.
materialssemiconductorchip-manufacturingtax-creditsUS-manufacturingtechnology-industryIntelIntel hits the brakes on its automotive business, and layoffs have started
Intel is shutting down its automotive architecture business and laying off most of its staff as part of a broader company restructuring aimed at refocusing on its core client and data center segments. The decision was communicated internally on June 25, 2025, with Intel emphasizing a commitment to a smooth transition for customers. While the automotive division was not a major revenue driver, it had been active in automated vehicle technology and software-defined vehicles, investing heavily since around 2015, including the $15.3 billion acquisition of Mobileye in 2017, which later became a publicly traded company with Intel as a major shareholder. Despite showcasing new AI-enhanced system-on-chip (SoC) technology for vehicles at CES 2025 and the Shanghai Auto Show earlier this year, the automotive business’s future appeared uncertain amid broader company challenges. New CEO Lip-Bu Tan had already warned of layoffs due to falling sales and a bleak outlook. The wind-down follows Intel’s recent announcement of layoffs in its Foundry division
robotautonomous-vehiclesautomotive-technologyAIsemiconductorsoftware-defined-vehiclesIntelA timeline of the US semiconductor market in 2025
The U.S. semiconductor market in the first half of 2025 has experienced significant turbulence amid the ongoing AI technology race. Intel underwent major leadership changes with Lip-Bu Tan appointed CEO, who quickly initiated organizational restructuring including planned layoffs of 15-20% in certain units and efforts to spin off non-core businesses such as its telecom chip division. Meanwhile, AMD aggressively expanded its AI hardware capabilities through acquisitions, including the teams behind Untether AI and Enosemi, a silicon photonics startup, positioning itself to challenge Nvidia’s dominance in AI chip technology. Nvidia faced considerable challenges due to U.S. government-imposed AI chip export restrictions, particularly on its H20 AI chips, which led to a projected $8 billion revenue loss in Q2 and a decision to exclude China-related revenue forecasts going forward. The U.S. government’s AI chip export policies have been contentious, with the Biden administration’s proposed AI Diffusion Rule ultimately abandoned in May, and the Trump administration signaling a different regulatory
materialssemiconductor-industryAI-chipsIntelNvidiaAMDchip-export-restrictionsIntel’s chief commercial officer and sales lead, Christoph Schell, resigns
IntelChristoph-Schellcorporate-leadershipresignationtechnology-industrybusiness-newsexecutive-changes