What happened: Intel, once a leader in the semiconductor industry, has seen its grip slip due to competition from Nvidia and AMD. CEO Pat Gelsinger hopes to revitalize the company with a contract chip-making foundry business, though progress could have been faster. Intel's foundry business witnessed a 58.3% annual drop, the most significant fall among its business divisions. Intel reported its most enormous quarterly loss ever and is taking drastic measures to reduce costs by up to $10B by 2025. Relevance: Intel has seen a decline due to its failure to innovate, leading to the success of its rivals in chip design and manufacturing. The competition and delay in production have put Intel's future in the chip-making industry at risk. Where to see the impact: Intel's potential revival has the potential to dramatically alter the semiconductor industry and chip-making on a global level. The U.S. government supports Intel's efforts to become a major contract chip manufacturer in the U.S. |
