[News] Ex-Intel CEO Craig Barrett Urges $40B from Customers to Rescue Team Blue, Slams 14A Delay

Former Intel CEO and chairman Craig Barrett has issued a bold prescription on what it will take to save both Intel and America’s ability to produce cutting-edge chips. Writing in Fortune, Barrett identifies Intel’s most urgent problem as a lack of investment, estimating the company needs about $40 billion to stay competitive—an amount exceeding CHIPS Act grants. He suggests that if eight of Intel’s largest customers—such as Apple, Google, and NVIDIA—each invested $5 billion, the company would have a fighting chance.

Barrett also takes aim at Intel CEO Lip Bu Tan’s remark that the company will delay investment in 14A technology until customers commit, calling it “a joke.” He argues that in this industry, success depends on leading in technology, not waiting to follow—making clear his opposition to slowing or canceling the 14A program.

In addition, Barrett is critical of suggestions to split Intel’s design and foundry divisions into separate entities. He firmly rejects the idea, contending that the real problem lies not in corporate structure but in insufficient financial resources. Rather than restructuring, he says Intel should focus on securing funding to restore investment in technology and capacity.

Stressing Intel’s strategic role in U.S. state-of-the-art logic manufacturing, Barrett notes that customers like NVIDIA, Apple, and Google need a second source for flagship chip production to ensure cost competitiveness, geographic stability, and supply chain security. To drive action, he even suggests the Trump administration could impose a 50% tariff—or whatever rate President Trump deems appropriate—on imports of leading-edge semiconductors.

Barrett’s remarks come as Intel faces political headwinds. According to Reuters, U.S. President Donald Trump last week called Intel CEO Lip-Bu Tan “highly conflicted” and demanded his immediate resignation over alleged ties to Chinese firms. Trump now says Tan—along with his leadership team—will present new proposals to him next week.

Read more

• [News] Intel CEO Lip-Bu Tan Reportedly to Pitch Proposals to Trump Next Week Amid Key Challenges
• [News] Intel Earnings Call Bombshell: Could Exit Advanced Nodes if 14A Fails, Eyes TSMC Outsourcing Beyond 18A

(Photo credit: Intel)