Ex-Intel boss pushes shocking $40 billion rescue plan involving Apple, Nvidia - calls for sacking Lip-Bu Tan
Ex-Intel CEO and chairman Craig Barrett has made an urgent call to action, laying out a striking $40 billion plan to save Intel and with it, America's leadership in advanced chipmaking, as per a report.
Craig Barrett warns of existential threat to Intel and US chipmaking
In a piece written for Fortune, Barrett warned that without immediate funding, Intel could fall permanently behind rivals like Taiwan's TSMC and South Korea's Samsung, a shift he believes would be disastrous for national security and the US tech industry, as per a Tom's Hardware report.
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Barrett believes Intel remains the only American company capable of competing with TSMC at the leading edge of semiconductor manufacturing, according to the report. But he says the company lacks the capital to scale its operations and invest in next-generation technologies, as per the report. According to him, federal funding through the CHIPS Act won't be enough to close the gap, as per a Tom's Hardware report
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$40 billion proposal targets Intel's biggest customers
Instead, he's proposing that Intel's eight largest customers, including companies like Apple, Google, and Nvidia, should each contribute $5 billion, adding up to a collective $40 billion investment, according to the report. In return, these companies would gain guaranteed domestic chip supply and pricing leverage against Asian competitors, as reported by Tom's Hardware.
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He also pointed out that neither TSMC nor Samsung has plans to bring their most advanced manufacturing capabilities to the US, which he sees as a long-term threat to American companies dependent on foreign chips, according to the report.
Barrett wrote that 'The only place the cash can come from is the customers,' adding that leadership in manufacturing requires proactive investment years ahead of market demand, as per the report.
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Intel CEO Lip-Bu Tan under scrutiny amid massive losses
He also criticized Intel's current leadership under CEO Lip-Bu Tan, who was appointed in March 2025, according to the Tom's Hardware report. The company has been struggling with massive financial losses, $18.8 billion in 2024 alone, and another $2.9 billion in the second quarter of 2025, and has also laid off tens of thousands of workers, while canceling major projects, as per the report.
The former chairman specifically called out Intel's hesitation to invest in its upcoming 14A manufacturing process without pre-existing customer contracts, calling the approach 'a joke' and warning it risks falling permanently behind, as reported by Tom's Hardware.
Tariffs on advanced chip imports could boost US manufacturing
His plan hinges on two things that include immediate investment in critical technologies like High-NA EUV and backside power delivery, and potential US tariffs on imported advanced chips to stimulate domestic demand, as reported by Tom's Hardware. Barrett even rejected calls to split Intel into separate design and manufacturing entities, pointing out that the core problem is capital, not structure, according to the report.
Donald Trump calls for Intel CEO's resignation
Barrett's remark comes after US president Donald Trump had publicly called for Tan's resignation over alleged ties to China, as per the report. Barrett highlighted that his proposal was important for both national security and supply chain stability, warning that the US cannot afford to let Intel's manufacturing leadership slip away, as reported by Tom's Hardware.
FAQs
What is Craig Barrett $40 billion plan for Intel?
He wants Intel's biggest customers to each invest $5 billion to help the company modernize its chipmaking.
Who are the companies he's targeting for funding?
Big tech players like Apple, Google, and Nvidia.
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