{"id":156328,"date":"2025-07-17T10:40:59","date_gmt":"2025-07-17T10:40:59","guid":{"rendered":"https:\/\/teknomers.com\/en\/intel-withdraws-from-the-chip-market-for-ai-its-ceo-admits-that-nvidias-lead-is-unbeatable\/"},"modified":"2025-07-17T10:41:01","modified_gmt":"2025-07-17T10:41:01","slug":"intel-withdraws-from-the-chip-market-for-ai-its-ceo-admits-that-nvidias-lead-is-unbeatable","status":"publish","type":"post","link":"https:\/\/teknomers.com\/en\/intel-withdraws-from-the-chip-market-for-ai-its-ceo-admits-that-nvidias-lead-is-unbeatable\/","title":{"rendered":"Intel withdraws from the chip market for AI. Its CEO admits that Nvidia’s lead is unbeatable."},"content":{"rendered":"\n

“I think it’s too late for us [to reach NVIDIA’s position in the field of artificial intelligence] although we have other opportunities in this market […] Twenty or thirty years ago we were leaders. Now the world has changed<\/strong>. We are not among the ten main semiconductor companies. We have to be humble.\u201d These words from Lip-Bu Tan, the CEO of Intel, serve as a stark reminder of the challenges facing the tech giant. Published by The Oregonian<\/a>, Tan’s candid remarks aim to prep Intel employees for the hurdles ahead.<\/p>\n

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Intel’s challenges are exacerbated by a series of setbacks in its illustrious history spanning over half a century. The company, once a leader in integrated circuit manufacturing, has ceded its position to Taiwan Semiconductor Manufacturing Company (TSMC) since the mid-2000s. Furthermore, stagnation in the PC market and a delayed response to the growing \u00a0AI\u00a0 industry have compounded Intel’s problems, placing it in a precarious situation.<\/p>\n

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In July 2024, under leadership from Pat Gelsinger, Intel experienced a \u00a0dramatic\u00a0 stock market drop, with shares plummeting by 30% in a matter of days, reverting to values not seen since 2011. During the same quarter, Intel reported a staggering loss of $1.6 billion, accompanied by a year-on-year revenue decline of 1%. This chain of events has triggered a crisis that continues to impact the company.<\/p>\n

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Today, China is a Crucial Support for Intel<\/h2>\n

Shortly after taking charge, Tan hinted at a potential workforce reduction, aiming to cut operating expenses. Speculations suggested a potential reduction of up to 20% of Intel’s workforce, meaning around 20,000 jobs could be lost. This figure comes on top of the more than 15,000 employees Intel has already let go in recent months of 2024.<\/p>\n

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Additionally, a layoff wave is expected from June 18 through July, affecting between 8,000 and 10,900 workers across Intel\u2019s global operations. Notably, the Oregon facility, the largest one, appears most vulnerable. Despite these hardships, \u00a0China\u00a0 remains a solid pillar for Intel in this turbulent period.<\/p>\n

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During fiscal year 2024, \u00a029%\u00a0 of Intel’s turnover came from China, in comparison to \u00a024%\u00a0 from the United States.<\/p>\n<\/p><\/div>\n<\/div>\n

China accounts for a significant portion of Intel’s revenue, contributing \u00a029%\u00a0 during fiscal year 2024, versus \u00a024%\u00a0 from the U.S. Of Intel\u2019s total income of $53.1 billion, approximately $15.4 billion originated from China. This reliance underscores how crucial the country is for Intel, particularly given the sensitive geopolitical context.<\/p>\n

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A notable portion of Intel’s revenue stems from the sale of comparatively older integrated circuits manufactured via mature lithography nodes. While these semiconductors may not represent cutting-edge technology, their significance cannot be understated. Amid the current U.S.-China tensions, these \u00a0mature integrated circuits are essential\u00a0 for Chinese manufacturers, who rely on them for appliances, telecommunications, and automotive applications.<\/p>\n

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Despite rising local capabilities, many users, research institutions, and universities in China continue to rely on software compatible with X86 and X86-64 processors. This dependency signifies that Intel\u2019s CPUs remain irreplaceable, offering the company a temporary advantage. However, Intel is also preparing to diversify its portfolio further by venturing into \u00a0memory chip\u00a0 design.<\/p>\n

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To this end, Intel has launched a new venture called Saimemory, established in collaboration with a Japanese investment consortium. This initiative targets the development of \u00a0high-stacked DRAM memory\u00a0, utilizing patents developed by Intel alongside several research institutions, including the University of Tokyo. As part of the project, Intel and Softbank plan to finalize a prototype and assess its technical viability by 2027.<\/p>\n

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Image | Intel<\/a><\/p>\n

For more details, visit The Oregonian<\/a>.<\/p>\n

In summary, while Intel confronts notable challenges, particularly regarding its competitiveness against peers like NVIDIA, the company is taking strategic steps to navigate its trajectory. With significant reliance on the Chinese market and investments in innovative memory technologies, Intel aims to redefine its role in the semiconductor landscape.<\/p>\n


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General News – 2<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

“I think it’s too late for us [to reach NVIDIA’s position in the field of artificial intelligence] although we have other opportunities in this market […] Twenty or thirty years ago we were leaders. Now the world has changed. We are not among the ten main semiconductor companies. We have to be humble.\u201d These words […]<\/p>\n","protected":false},"author":1,"featured_media":156329,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[36399],"tags":[931,10707,10792,36977,864,1857,39031,28123,4161],"class_list":["post-156328","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-technology","tag-admits","tag-ceo","tag-chip","tag-intel","tag-lead","tag-market","tag-nvidias","tag-unbeatable","tag-withdraws"],"_links":{"self":[{"href":"https:\/\/teknomers.com\/en\/wp-json\/wp\/v2\/posts\/156328","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/teknomers.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/teknomers.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/teknomers.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/teknomers.com\/en\/wp-json\/wp\/v2\/comments?post=156328"}],"version-history":[{"count":0,"href":"https:\/\/teknomers.com\/en\/wp-json\/wp\/v2\/posts\/156328\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/teknomers.com\/en\/wp-json\/wp\/v2\/media\/156329"}],"wp:attachment":[{"href":"https:\/\/teknomers.com\/en\/wp-json\/wp\/v2\/media?parent=156328"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/teknomers.com\/en\/wp-json\/wp\/v2\/categories?post=156328"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/teknomers.com\/en\/wp-json\/wp\/v2\/tags?post=156328"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}