Future of Intel Foundry — Elon or US or ?

Semiconductors are the unsung heroes of modern technology, powering nearly everything we interact with daily, from smartphones and cars to laptops and home appliances. These tiny chips serve as the “brains” of devices, enabling their functionality and performance. Yet, few outside the tech world truly understand the complexity and scale of semiconductor manufacturing — a process requiring billions in investment and cutting-edge engineering.

Today, the semiconductor industry is dominated by two key players: Intel and TSMC (Taiwan Semiconductor Manufacturing Company). These giants have distinct approaches. TSMC operates as the world’s largest chip manufacturer, producing processors for major companies like AMD, Nvidia, Apple, and others. Intel, historically, has taken a vertically integrated approach, designing and manufacturing its own chips in-house, which gave it a commanding market share for decades.

However, Intel’s business model underwent a seismic shift in 2020 with the return of CEO Pat Gelsinger. For the first time, Intel announced plans to open its foundries to third-party chipmakers, effectively adopting elements of TSMC’s business model. This decision wasn’t just a strategic pivot — it was driven by geopolitical and national security concerns. The COVID-19 pandemic exposed vulnerabilities in global supply chains, highlighting overdependence on Taiwan, home to TSMC, and amplifying fears about the impact of U.S.-China tensions on critical technology infrastructure.