Opinion. The former executive director and president of the Board of Directors of Intel, Craig Barrett, has published a Fortune what he describes as “A plan to save Intel and the manufacture of advanced chips from the United States ».
Intel registered in 2024 multimillionaire losses of 18,000 million dollars, which had not happened in the last forty years. It was the final data that showed the harsh reality: Intel goes through the worst moment in its history. The new CEO, lip-bu tan, has already advanced the adoption of «Difficult, but essential measures to face the challenges of affordability and the current financial situation of the company» And one of them has been completed in massive dismissals, which have gone further than what was planned.
The new CEO has simplified the organization by merging functions and creating new divisions that meet demand and present convincing financial perspectives. He has also launched technical and manufacturing novelties to get out of the situation.
Craig Barrett: “How to save Intel”
The last week we learned that Donald Trump requested the immediate resignation of Lip-Bu Tan, in what would be a new sake for Intel, at least in the short term, because all the established plans would be suspended. All scenarios are open and the debate persists between investors and analysts.
A whole (and president (and president) of Intel wanted to show his opinion and is interesting, taking into account that Craig Barrett was also in stages of problematic direction such as that arising in the explosion of the point-com bubble. Another thing is that you share your opinion, because it hardly attacks the current CEO and the Board of Directors. We leave you with your proposals at ten points:
1. Yeah; USAsince Intel is the only American company capable of providing latest generation logic manufacturing.
2. Neither Samsung nor TSMC plan to bring their latest technology manufacture to the United States in the short term.
3. American customers such as Nvidia, Apple, Google, etc. They must understand that They need a second source for the manufacture of their leading products due to Price reasons, geographical stability and safety of the supply line.
4. Intel has liquidity problems and cannot afford to invest in the necessary capacity in the future to replace TSMC, even in a reasonable fraction of its capacity. You probably need an cash injection of approximately 40,000 million dollars to be competitive. Being realistic, that investment represents 100% of the capital subsidies of the Chips Law, so it is unlikely that the United States Government will be El Salvador.
5. The only place where cash can come is of the big clients. All are rich in cash, and if eight of them were willing to invest 5 billion dollars each, Intel would have a chance.
6. The comments of Intel’s current CEO about not investing in new technology (14a) until customers register are a joke. To succeed in this sector, You have to be a technology leader, not a simple follower. Creating one of these technologies has been for several years and no client wants to acquire some second category.
7. Fortunately, Intel has good technology, so they have a real possibility of leading if they invest now. They just need money.
8. Where does money come from? Why should they invest in Intel? National Supply, Second Source, National Security, Influence in Negotiation with TSMC, etc. And if the United States government agrees, it will catalyze the action with a 50% tariff (or the figure that Trump chooses) on the imports of last generation semiconductors. If we can support national steel and aluminum, we can undoubtedly support national semiconductors.
9. The FFWBM (four old and wise members of the Board of Directors) of Intel continue to affirm that Intel must be divided into two parts so that any client invests in it. Be serious. There are many interactions between companies that involve both supply and competition. In addition, it is extremely difficult to imagine that Intel really competes with companies such as Nvidia, Apple, Meta, Google, Dell, etc., in its consolidated product lines. Of course, if you want to complicate the problem, take the time to divide Intel and content the FFWBM. But if your goal is to save Intel and its main manufacturing force for the USA.
10. President Trump and the Department of Commerce can prepare the scenario, customers can make the necessary investments, Intel Board can finally do something positive for the company and we will stop writing opinion articles on the subject.
Opinion of Craig Barrett, Excel and President of the Board of Directors of Intel
