After a series of financial and operational challenges, Intel is returning to its roots — refocusing on its core x86 CPU business while pushing forward with its foundry transformation.
In a message to employees, CEO Pat Gelsinger outlined the next phase of Intel’s turnaround strategy, emphasizing efficiency, profitability, and competitiveness.
🧭 Intel’s New Strategic Priorities #
In his internal update, Gelsinger identified three major focus areas:
- Leverage the Intel 18A process node to strengthen Intel Foundry’s momentum and improve capital efficiency.
- Optimize cost structure to achieve the previously announced $10 billion savings target — which likely includes further layoffs.
- Refocus on Intel’s x86 leadership, streamline product offerings, and align the company’s AI strategy to serve its customers and partners more effectively.
“There is a lot of work to do to improve efficiency, profitability, and our competitiveness in the market,” said Gelsinger, emphasizing Intel’s renewed focus on what it does best — x86 CPUs and silicon innovation.
🏭 Intel Foundry Gains Momentum #
One of the most significant recent developments comes from Intel Foundry, the company’s manufacturing arm.
With strong backing from the U.S. government, Intel secured a multi-billion-dollar partnership with Amazon (AWS) to manufacture custom AI chips using its advanced Intel 18A process.
The collaboration extends beyond 18A to include Intel 18AP and Intel 14A, signaling a deeper partnership between Intel and AWS on next-generation silicon manufacturing.
Additionally, Intel received up to $3 billion in CHIPS Act funding, aimed at expanding domestic, trusted semiconductor manufacturing capabilities in the United States — solidifying Intel’s strategic importance to U.S. national interests.
💡 Foundry Independence and Future Flexibility #
To improve operational clarity and attract external customers, Intel plans to spin out Intel Foundry as a wholly owned subsidiary.
This structural change will allow Intel to pursue independent funding opportunities and optimize capital allocation while maintaining synergies with its core businesses.
“The subsidiary structure provides greater clarity of separation and independence for our external foundry customers and suppliers,” said Gelsinger.
“It also gives us flexibility to evaluate independent sources of funding and maximize shareholder value.”
This move mirrors strategies seen at other semiconductor giants such as TSMC and Samsung, giving Intel Foundry more autonomy to operate competitively in the global chip market.
🔁 Returning to Its Roots #
Intel’s renewed focus marks a strategic reset after years of diversification into non-core areas.
By doubling down on x86 CPU innovation, AI-driven workloads, and leading-edge manufacturing, Intel aims to reclaim its position as a technology and performance leader in the semiconductor industry.
While the road ahead remains challenging, the company’s renewed focus — paired with strong government backing and foundry growth — signals a back-to-basics approach that may well define Intel’s next era of innovation and stability.