Latest news with #CraigBarrett
Yahoo
4 days ago
- Business
- Yahoo
Ex-Intel CEO calls current Intel CEO's plans for chip factory investment a 'joke' and wants Nvidia, Apple and Google to stump up the cash to save the fabs
When you buy through links on our articles, Future and its syndication partners may earn a commission. Intel CEO Lip Bu Tan's plan to not invest in the upcoming 14A chip manufacturing node until customers sign up is a joke. That's according to Intel's former CEO, Craig Barrett. Oh, and Barrett doesn't much like the idea that Intel's product design business and its chip factories should be split into two companies. Instead, he reckons Nvidia, Apple and Google should stump up the cash to save Intel's fabs. Barrett explains all this in an extraordinarily to-the-point and bullet-pointed smackdown on the Fortune website. For the record, Barrett was Intel CEO from 1998 to 2005. He was a hard-nosed, no-nonsense, five-blades kind of CEO, but more on that in a moment. Intel was dominant during that period, first with the Pentium 4 Netburst series of CPUs, before it pivoted to the Pentium M CPU architecture in 2003 that focussed more on IPC than pure clockspeed, and that ultimately underpins Intel processors to this day. Anyway, to quote Barrett verbatim, "The current Intel CEO's comments about not investing in new technology (14A) until customers sign up is a joke. To win in this space you need to be the leader in technology not the follower. It takes multiple years to create one of these technologies and no customer wants to sign up for something that is second best." If that's the detail regarding current CEO Lip Bu Tan and Intel's chip manufacturing, Barrett has a broader point to make. "Yes, the USA NEEDS INTEL, as Intel is the only U.S. company capable of providing state of the art logic manufacturing," he says. The solution, according to Barrett, is for Intel's customers to pump massive amounts of cash into the company. "U.S. customers like Nvidia, Apple, Google, etc needs and should understand they NEED a second source for their lead product manufacturing due to pricing, geographic stability and supply line security reasons," Barrett explains. "Intel is cash poor and can't afford to invest in the capacity needed in the future to replace TSMC or even a reasonable fraction of TSMC capacity. They probably need a cash infusion of $40B or so to be competitive. Realistically that investment is 100% of the Chip Act Capital grants so unlikely the USG is the savior. "The only place the cash can come from is the customers. They are all cash rich and if eight of them were willing to invest $5B each then Intel would have a chance," he concludes. He also draws a parallel with government support for other domestic industries, and asks why chip manufacturing shouldn't be the same. "If we can support domestic steel and aluminium, surely we can support domestic semiconductors." His final broadside is aimed at the quartet of former Intel board members who recently called for Intel's fabs to be spun off, "before the rust of time makes them worthless." His withering put down for their core position that customers won't like the conflict of interest inherent in Intel both making its own chip and having access to the designs of customers and competitors? "Be serious. There are many company interactions that involve both supply and competition." Ouch. Anyway, you can read the whole, brutal smackdown here. Whether anyone is listening, we'll have to wait and see. One reason not to listen is that it was only February this year that Barrett claimed that "Intel was back," a comment that hasn't aged terribly well in just five months. There's also more than a whiff of the Onion's seminal "Five Blades" satire from way back in 2004, written when Barrett was indeed atop Intel and CEOs with his brand of swagger were in fashion. For now, current CEO Lip Bu Tan has just been to see President Trump, and apparently he doesn't need to resign immediately after all. Instead, he's a 'uge success. Whatever. Sign in to access your portfolio
Yahoo
4 days ago
- Business
- Yahoo
Ex-Intel CEO calls current Intel CEO's plans for chip factory investment a 'joke' and wants Nvidia, Apple and Google to stump up the cash to save the fabs
When you buy through links on our articles, Future and its syndication partners may earn a commission. Intel CEO Lip Bu Tan's plan to not invest in the upcoming 14A chip manufacturing node until customers sign up is a joke. That's according to Intel's former CEO, Craig Barrett. Oh, and Barrett doesn't much like the idea that Intel's product design business and its chip factories should be split into two companies. Instead, he reckons Nvidia, Apple and Google should stump up the cash to save Intel's fabs. Barrett explains all this in an extraordinarily to-the-point and bullet-pointed smackdown on the Fortune website. For the record, Barrett was Intel CEO from 1998 to 2005. He was a hard-nosed, no-nonsense, five-blades kind of CEO, but more on that in a moment. Intel was dominant during that period, first with the Pentium 4 Netburst series of CPUs, before it pivoted to the Pentium M CPU architecture in 2003 that focussed more on IPC than pure clockspeed, and that ultimately underpins Intel processors to this day. Anyway, to quote Barrett verbatim, "The current Intel CEO's comments about not investing in new technology (14A) until customers sign up is a joke. To win in this space you need to be the leader in technology not the follower. It takes multiple years to create one of these technologies and no customer wants to sign up for something that is second best." If that's the detail regarding current CEO Lip Bu Tan and Intel's chip manufacturing, Barrett has a broader point to make. "Yes, the USA NEEDS INTEL, as Intel is the only U.S. company capable of providing state of the art logic manufacturing," he says. The solution, according to Barrett, is for Intel's customers to pump massive amounts of cash into the company. "U.S. customers like Nvidia, Apple, Google, etc needs and should understand they NEED a second source for their lead product manufacturing due to pricing, geographic stability and supply line security reasons," Barrett explains. "Intel is cash poor and can't afford to invest in the capacity needed in the future to replace TSMC or even a reasonable fraction of TSMC capacity. They probably need a cash infusion of $40B or so to be competitive. Realistically that investment is 100% of the Chip Act Capital grants so unlikely the USG is the savior. "The only place the cash can come from is the customers. They are all cash rich and if eight of them were willing to invest $5B each then Intel would have a chance," he concludes. He also draws a parallel with government support for other domestic industries, and asks why chip manufacturing shouldn't be the same. "If we can support domestic steel and aluminium, surely we can support domestic semiconductors." His final broadside is aimed at the quartet of former Intel board members who recently called for Intel's fabs to be spun off, "before the rust of time makes them worthless." His withering put down for their core position that customers won't like the conflict of interest inherent in Intel both making its own chip and having access to the designs of customers and competitors? "Be serious. There are many company interactions that involve both supply and competition." Ouch. Anyway, you can read the whole, brutal smackdown here. Whether anyone is listening, we'll have to wait and see. One reason not to listen is that it was only February this year that Barrett claimed that "Intel was back," a comment that hasn't aged terribly well in just five months. There's also more than a whiff of the Onion's seminal "Five Blades" satire from way back in 2004, written when Barrett was indeed atop Intel and CEOs with his brand of swagger were in fashion. For now, current CEO Lip Bu Tan has just been to see President Trump, and apparently he doesn't need to resign immediately after all. Instead, he's a 'uge success. Whatever.
Economic Times
4 days ago
- Business
- Economic Times
Ex-Intel boss pushes shocking $40 billion rescue plan involving Apple, Nvidia - calls for sacking Lip-Bu Tan
Intel $40 billion rescue plan: Former Intel CEO Craig Barrett suggests a $40 billion plan. It aims to rescue Intel and America's chipmaking dominance. He urges Intel's major clients like Apple and Google to invest. Each should contribute $5 billion. This will ensure domestic chip supply. It will also provide pricing power against Asian rivals. He criticizes Intel's current CEO and investment strategies. Tired of too many ads? Remove Ads Craig Barrett warns of existential threat to Intel and US chipmaking $40 billion proposal targets Intel's biggest customers Tired of too many ads? Remove Ads Intel CEO Lip-Bu Tan under scrutiny amid massive losses Tariffs on advanced chip imports could boost US manufacturing Donald Trump calls for Intel CEO's resignation FAQs Tired of too many ads? Remove Ads 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 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 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 reportALSO READ: See you in court! Trump targets Fed Chair Jerome Powell with massive lawsuit threat 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 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 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 READ: AI upstart Perplexity shocks tech world with $34.5 billion bid to snatch Google Chrome 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 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 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 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 wants Intel's biggest customers to each invest $5 billion to help the company modernize its tech players like Apple, Google, and Nvidia.
Yahoo
5 days ago
- Business
- Yahoo
Former Intel CEO lays out radical plan to rescue the company — Suggests outing Lip-Bu Tan and asks for $40 billion investment from Nvidia, Apple, and others
When you buy through links on our articles, Future and its syndication partners may earn a commission. Former Intel CEO and chairman Craig Barrett has laid out a blunt blueprint to rescue both Intel and, by extension, America's ability to produce state-of-the-art chips. He has warned that without urgent funding, Intel risks ceding critical ground to overseas rivals, which is an unprecedented fate since the company is crucial to America's contemporary semiconductor ambitions. He stressed that leadership in chipmaking requires heavy investment years in advance of demand Writing in Fortune, Barrett argued that Intel remains the sole US company capable of matching Taiwan's TSMC at the leading edge—but lacks the capital to scale and modernize its production. With government CHIPS Act funding insufficient to close the gap, he insists the only realistic source of cash is Intel's own customers. He proposed that Intel's eight largest customers, including Apple, Google, and Nvidia, should each contribute $5 billion in return for guaranteed domestic supply and pricing leverage against Asian competitors. Barrett said neither TSMC nor Samsung intends to bring their most advanced manufacturing to US soil, posing long-term risks for American technology companies dependent on imported chips. 'The only place the cash can come from is the customers,' he wrote, adding that leadership in manufacturing requires proactive investment years ahead of market demand. The proposal comes as Intel faces significant headwinds. Under CEO Lip-Bu Tan, appointed in March 2025, the company has been cutting over tens of thousands of jobs and cancelling major projects amid steep losses—$18.8 billion in 2024 and another $2.9 billion in Q2 2025. Intel has also purportedly stuggled with severe yield issues on its 18A manufacturing process, delaying key products and soft-forcing a pivot to its future 14A node. Barrett criticized the current leadership's reluctance to invest in 14A without pre-existing customer contracts, calling the approach 'a joke' and warning it risks falling permanently behind. Barrett's plan hinges on two pillars: 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. He rejected calls to split Intel into separate design and manufacturing entities, arguing that the core problem is capital, not structure. His comments arrive as Intel navigates political turbulence. President Donald Trump has publicly called for Tan's resignation over alleged ties to China, with the two meeting at the White House today. While not directly addressing the leadership dispute, Barrett framed his proposal as essential for both national security and supply chain stability, warning that the US cannot afford to let Intel's manufacturing leadership slip away. Follow Tom's Hardware on Google News to get our up-to-date news, analysis, and reviews in your feeds. Make sure to click the Follow button.
Yahoo
5 days ago
- Business
- Yahoo
Former Intel CEO lays out radical plan to rescue the company — Suggests outing Lip-Bu Tan and asks for $40 billion investment from Nvidia, Apple, and others
When you buy through links on our articles, Future and its syndication partners may earn a commission. Former Intel CEO and chairman Craig Barrett has laid out a blunt blueprint to rescue both Intel and, by extension, America's ability to produce state-of-the-art chips. He has warned that without urgent funding, Intel risks ceding critical ground to overseas rivals, which is an unprecedented fate since the company is crucial to America's contemporary semiconductor ambitions. He stressed that leadership in chipmaking requires heavy investment years in advance of demand Writing in Fortune, Barrett argued that Intel remains the sole US company capable of matching Taiwan's TSMC at the leading edge—but lacks the capital to scale and modernize its production. With government CHIPS Act funding insufficient to close the gap, he insists the only realistic source of cash is Intel's own customers. He proposed that Intel's eight largest customers, including Apple, Google, and Nvidia, should each contribute $5 billion in return for guaranteed domestic supply and pricing leverage against Asian competitors. Barrett said neither TSMC nor Samsung intends to bring their most advanced manufacturing to US soil, posing long-term risks for American technology companies dependent on imported chips. 'The only place the cash can come from is the customers,' he wrote, adding that leadership in manufacturing requires proactive investment years ahead of market demand. The proposal comes as Intel faces significant headwinds. Under CEO Lip-Bu Tan, appointed in March 2025, the company has been cutting over tens of thousands of jobs and cancelling major projects amid steep losses—$18.8 billion in 2024 and another $2.9 billion in Q2 2025. Intel has also purportedly stuggled with severe yield issues on its 18A manufacturing process, delaying key products and soft-forcing a pivot to its future 14A node. Barrett criticized the current leadership's reluctance to invest in 14A without pre-existing customer contracts, calling the approach 'a joke' and warning it risks falling permanently behind. Barrett's plan hinges on two pillars: 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. He rejected calls to split Intel into separate design and manufacturing entities, arguing that the core problem is capital, not structure. His comments arrive as Intel navigates political turbulence. President Donald Trump has publicly called for Tan's resignation over alleged ties to China, with the two meeting at the White House today. While not directly addressing the leadership dispute, Barrett framed his proposal as essential for both national security and supply chain stability, warning that the US cannot afford to let Intel's manufacturing leadership slip away. Follow Tom's Hardware on Google News to get our up-to-date news, analysis, and reviews in your feeds. Make sure to click the Follow button. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
