Intel announces a renewal to continue in Chip leadership

In February, Intel changed its CEO and the new one has taken just a few weeks to announce strategic changes to try to lead the chip market again. In a few years it will be seen if they have succeeded.

The new CEO Pat Gelsinger has announced his new strategy that involves manufacturing his own chips (as they have done so far) and others for other companies (which they did not do before), thus making better use of the huge industrial investments required.

Chip factories cost billions of dollars, and the better their workload is put to use, the better they pay off.

According to him, they are going to create two new factories in the USA and another two in Europe, which would level the distribution of workloads between East and West a little better.

We have to bear in mind that today all activity is digital, which means that it is based on this type of chip. And those who control the chips, control the world. USA, China, Taiwan and Korea.

Currently the largest manufacturers are in Taiwan (TSMC) and South Korea (Samsung), and I don’t even want to think about what would happen worldwide if one day China “occupies” Taiwan (as it has been announcing for a long time), and North Korea does the same with South Korea (presumably with the help of China).

China would have the world by the balls, literally. And war would be more than guaranteed. And maybe this is why it may not happen.

So the Intel change in chip manufacturing is strategic and makes perfect sense.

Both North American and European leaders have been asking for these changes for a long time and I am sure that Intel will get good help for their new investments.

And Intel still has the technological challenge of catching up with TSMC and Samsung that are already manufacturing 5 nm chips (nano meters), when they are still at 7 nm.

The smaller the number, the greater the technology required. Today TSMC is the undisputed world leader, and it will not be easy to displace it.

What’s more, after the statements of the new CEO of Intel, TSMC has also announced billionaire investments to manufacture chips.

Nobody stands still here.

In part Intel wants to emulate something that TSMC does very well, and that is to make chips for others. And it will be those “others” who will have to trust Intel to make them something that is very sensitive: the fundamental components of their products.

Intel will have to work a lot for other large companies (Apple, etc …) to put part of their “business” in their hands.

But all this will not change the current chip drought that is currently affecting the market, as its effects will be seen in many years. On the other hand, it can be very important, especially for Intel that its shares jumped in value as soon as its new CEO made the announcement.

In a few years we will see how the situation unfolds.



I am an electronic engineer with more than 40 years working in industry. I like to reflect on Technological and Social issues

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store
Amador Palacios

I am an electronic engineer with more than 40 years working in industry. I like to reflect on Technological and Social issues