Four ex-Intel board members propose an alliance between Nvidia, Qualcomm, Google, Amazon, Apple, Broadcom, and others to establish an "American Foundry," aiming to protect Intel's fabrication facilities from decay and reducing their market value.
In a bid to preserve and sustain US-based advanced semiconductor manufacturing capabilities, four former Intel board members have proposed an innovative solution. Charlene Barshefsky, Reed Hundt, James Plummer, and David B. Yoffie, who collectively have over 70 years of tenure on the Intel board, have expressed concern about the company's current state and the potential consequences of Intel's gradual exit from advanced manufacturing.
The former board members propose creating a public-private joint venture comprising major tech companies like Nvidia, Qualcomm, Google, Amazon, Apple, and Broadcom. This coalition would buy and operate Intel’s chip manufacturing fabs, aiming to maintain US leadership in AI and advanced electronics despite Intel's potential exit.
The key details of their proposed solutions include spinning off Intel’s fabs into a separate entity to give them an independent "fighting chance." This move would distinguish the fabs from Intel’s commercial strategy of potentially exiting advanced manufacturing.
Another idea involves forming a large coalition of American tech firms in a joint venture to collectively own and manage the fabs, safeguarding the strategic US manufacturing capacity critical for AI and advanced electronics leadership. This approach could also circumvent tariffs on semiconductors through production inside the US, creating incentives for companies to participate.
Additionally, the former board members suggest that TSMC (Taiwan Semiconductor Manufacturing Company) could potentially take control of Intel’s fabs for a stake in the business, with backing from other partners. This would leverage TSMC’s leading-edge manufacturing expertise while maintaining US-based fabrication.
The concern is that Intel’s retreat from advanced chip production would leave US leadership in AI and technology dependent primarily on foreign firms like TSMC and Samsung, whose latest chip R&D and production occur outside the US, posing strategic risks.
The former board members argue that maintaining a leading-edge chip manufacturing ecosystem on US soil is critical. They believe that only a joint, collaborative, and government-supported initiative can realistically save Intel’s fabs and sustain US semiconductor leadership.
Intel itself has warned that it may have to give up on cutting-edge chip manufacturing if a major customer for its fabs can't be found. An analyst recently gave Intel 18 months to find a major customer for its fabs, or see its ambitions to be a cutting-edge chip manufacturer wither.
Despite the former board members' recommendations, their proposals have yet to be adopted. The future of US leadership in AI and advanced electronics hangs in the balance as the race to secure advanced chip manufacturing capabilities continues.
- The former Intel board members have proposed a public-private joint venture with major tech companies like Nvidia, Qualcomm, Google, Amazon, Apple, and Broadcom, aiming to buy and operate Intel’s chip manufacturing fabs.
- This coalition would maintain US leadership in AI and advanced electronics despite Intel's potential exit, as they aim to distinguish the fabs from Intel’s commercial strategy of potentially exiting advanced manufacturing.
- Another idea involves forming a large coalition of American tech firms in a joint venture, where they would collectively own and manage the fabs, safeguarding the strategic US manufacturing capacity critical for AI and advanced electronics leadership.
- The former board members suggest that TSMC (Taiwan Semiconductor Manufacturing Company) could potentially take control of Intel’s fabs for a stake in the business, with backing from other partners, with the aim of leveraging TSMC’s leading-edge manufacturing expertise while maintaining US-based fabrication.
- Maintaining a leading-edge chip manufacturing ecosystem on US soil is critical, according to the former board members, who believe that only a joint, collaborative, and government-supported initiative can realistically save Intel’s fabs and sustain US semiconductor leadership.
