Intel's former CEO proposes drastic measures for the company's revival, including the removal of Lip-Bu Tan and soliciting a multi-billion dollar investment from technological giants like Nvidia, Apple, among others, amounting to $40 billion.
In a bid to secure America's position in the global chip industry, former Intel CEO and Chairman Craig Barrett has proposed a groundbreaking plan to rescue Intel and ensure the domestic production of state-of-the-art chips.
According to Barrett, the plan involves Intel's eight largest customers, including tech giants like Apple, Google, and Nvidia, each contributing $5 billion to fund Intel's production scaling and modernization. This approach effectively spreads the investment burden across key customers who would benefit directly from supply assurances.
Barrett argues that the core problem at Intel is not structure but capital. He rejects the idea of splitting Intel into separate design and manufacturing entities, instead advocating for a focus on securing the necessary funds to scale and modernize Intel's production.
Intel, as Barrett points out, remains the sole US company capable of matching Taiwan's TSMC at the leading edge. However, the company lacks the capital to scale and modernize its production. Barrett warns that the US cannot afford to let Intel's manufacturing leadership slip away, especially as neither TSMC nor Samsung plans to bring their most advanced manufacturing to US soil, posing long-term risks for American technology companies dependent on imported chips.
Recent reports suggest that the U.S. government, through the Trump administration, is considering taking a 10 percent stake in Intel to facilitate the release of CHIPS Act funds. This could provide further substantial public funding support for Intel's production expansion. Combining customer-funded investments with government-backed financing could create a viable path for Intel to finance its modernization and scaling efforts.
Barrett's plan includes immediate investment in High-NA EUV technology and investment in backside power delivery. He also frames his proposal as essential for national security and supply chain stability.
However, Intel, under its current CEO Lip-Bu Tan, has been facing severe challenges. The company has been cutting tens of thousands of jobs and canceling major projects due to steep losses. Intel has also struggled with severe yield issues on its 18A manufacturing process, causing delays in key products and a pivot to its future 14A node. In 2024, Intel reported losses of $18.8 billion, followed by another $2.9 billion in Q2 2025.
Barrett's proposal comes amidst growing concerns about the US's reliance on foreign chip production. He warns that the US cannot afford to let Intel's manufacturing leadership slip away and emphasizes the need for immediate action to secure America's chip industry.
In a related development, President Donald Trump has called for Tan's resignation over alleged ties to China. However, Trump and Tan met at the White House today, and it remains unclear how this will impact Barrett's proposed plan.
[1] Source: Reuters, "U.S. government may take 10% stake in Intel to help release CHIPS Act funds", 1st April 2023.
- The groundbreaking plan proposed by Craig Barrett, former Intel CEO, involves tech giants like Apple, Google, and Nvidia, each contributing $5 billion to fund Intel's production scaling and modernization.
- Barrett argues that Intel's core problem is not structure but capital, and he advocates for a focus on securing the necessary funds to scale and modernize Intel's production, which is essential for national security and supply chain stability.
