[News] Intel’s Harsh Wake-Up Call: CEO Reportedly Says It’s No Longer a Top 10 Chipmaker

While rolling out a fresh wave of layoffs—reportedly cutting over 500 Oregon jobs by July 15 as part of broader plans to cut 15–20% of manufacturing roles—Intel CEO Lip-Bu Tan bluntly told employees he no longer sees Intel as a leading chipmaker, not even in the top 10, according to Oregon Live.

The report quotes CEO Lip-Bu Tan saying that while Intel led the industry 30 years ago, it now trails far behind rivals like NVIDIA, Broadcom, and AMD, and its fall is hard to miss. As per Oregon Live, Team Blue’s market value has plunged to around $100 billion, half of what it was 18 months ago. Meanwhile, NVIDIA briefly surpassed $4 trillion this week, becoming the first company to ever hit that mark, the report adds.

Strategic Pivot: Edge AI and Uncertainty Around 18A’s Future

According to the report, Tan admitted that it’s too late for Intel to catch up with NVIDIA’s lead in AI model training. Instead, Intel is shifting its focus to edge AI, which delivers intelligence directly to PCs and devices, while also exploring agentic AI—a rapidly growing field where AI systems operate independently without constant human guidance, Tan said.

Notably, regarding the company’s plans to move away from its 18A node in favor of 14A for new foundry clients, which was reported by Reuters last week, Tan did not directly confirm the information, as per Oregon Live. Instead, he reportedly emphasized that Intel’s primary goal is to make sure 18A is solid for internal use—its own processors, then it will start looking at 14A after that.

According to Reuters, Intel will continue producing chips using 18A where plans are already in motion, regardless of the board’s decision. This includes a relatively small volume of chips committed to Amazon and Microsoft, with delivery timelines that make waiting for the 14A process impractical, the report notes.

Ongoing Layoffs and Ohio’s Path Forward

Intel’s latest round of layoffs is reportedly underway, with widespread job cuts beginning in early July, according to Oregon Live. The report suggests that on Monday, the company announced plans to cut 529 jobs in Oregon by mid-month, with hundreds more already in progress across California, Arizona, and Israel.

More cuts are coming as Intel shuts down its automotive unit, outsources marketing, and trims up to 20% of its manufacturing workforce, as pointed out by Oregon Live.

It is worth noting that Lip-Bu Tan may not only be considering a major strategic shift for Intel Foundry, but also mulling about its $28 billion Ohio plant now under construction, according to NBC4i.com. Intel has indicated 18A will be used in Ohio’s facilities, the report notes.

According to The Columbus Dispatch, Intel’s first Ohio factory, originally set for 2025, will be delayed by at least five to six years, opening in 2030 or 2031. Meanwhile, the second factory in Ohio won’t be ready until 2031, with operations starting in 2032, the report adds.

Read more

• [News] Intel Reportedly Began Job Cuts on Monday in U.S. and Israel, Eyes Possible Kiryat Gat Plant Closure
• [News] Intel Reportedly Considering Dropping Glass Substrate Project, Eyes External Sourcing
• [News] Intel Reportedly Braces for Major Layoffs on July 15, Closes Automotive Unit

(Photo credit: Intel)