Intel cooperates with Microsoft with the ambition to regain the number 1 position in the chip market

Intel is optimistic about beating its internal 2025 deadline to beat its main competitor, Taiwan Semiconductor Manufacturing Company (TSMC), in advanced chipmaking.

The announcement was made during an event held in San Jose, California, marking the inaugural technology conference of Intel Foundry, the company's contract manufacturing division created to compete with TSMC. Intel also outlined a strategy to regain the title of fastest chip maker in the world from TSMC, with the goal of achieving this milestone by the end of this year with its Intel 18A manufacturing technology.

The company also aims to extend its lead through 2026 with the introduction of new Intel 14A technology. Microsoft is preparing to leverage Intel's 18A technology for an undisclosed chip, contributing to an increase in Intel's future chip production orders, expected to reach $15 billion, up from an estimated $10 billion. billion USD previously.

The launch of Intel's 14A technology marks an important milestone, providing insight into the company's long-term plans beyond 2025. The company seems determined to regain its chip manufacturing dominance a position it has held for decades by leveraging its manufacturing capabilities to produce high-performance chips. However, with the loss of its manufacturing leadership, Intel has faced challenges that have led to reduced competitiveness and profit margins, hindering the company's manufacturing efforts.

To reposition itself in the semiconductor industry, Intel is relying on significant investments from the U.S. government and attracting business from outside customers. The company's geographic diversity, with various factories operating on multiple continents, offers an interesting value proposition, especially for customers wary of TSMC's centralization of facilities. high-end headquarters in Taiwan.

Intel's external customer engagement initiative is critical to its turnaround strategy, and analysts emphasize its importance to the company's trajectory. The company's specialized technologies, including those aimed at accelerating AI chip development, further strengthen the company's appeal to potential partners like Nvidia, although there are none yet. No formal agreement has been announced.

Overall, Intel's efforts to regain market dominance represent a strategic shift that emphasizes its commitment to technological innovation, strategic partnerships and market diversification. While the success of this strategy remains to be seen, Intel's proactive approach gives it growth potential and relevance in the evolving semiconductor landscape.

Lesley Montoya

Update 24 February 2024