In recent years, Intel has faced harsh scrutiny for what many view as a steady decline from its once-dominant position in the semiconductor industry. However, as Intel’s troubles mount, a new narrative is emerging—one where the company’s survival is crucial not only for its stakeholders but also for the geopolitical stability of the United States and its competitive edge in the global semiconductor race. The U.
S. might have no choice but to rescue Intel, regardless of the company’s past missteps. Intel’s fall from grace began in the early 2000s, a period marked by key strategic mistakes.
The company missed the explosion in demand for mobile chips, failing to secure critical contracts like the one Apple handed to Samsung for its iPhone processors. Worse yet, Intel failed to capitalize on the AI revolution. Competitors like Nvidia designed chips optimized for AI and machine learning, leaving Intel’s processors technologically lagging by several years.
As a result, by 2021, Intel’s chips had fallen two generations behind, a humiliating position for a company once considered the industry leader. Despite these failures, Intel remains vital to the U.S.
semiconductor ecosystem. In an interview with , CEO Pat Gelsinger acknowledged the immense challenge the company faces: “Thirty years of poor economic policy cannot be fixed in a three- to five-year CHIPS One program” . He’s referring to the government’s $52 billion CHIPS and Science Act, which was passed to boo.