Intel Concerns Continue to Grow
Long time readers of IFTLE know that we have been following the technical and financial issues recently plaguing Intel. Recent reports in Reuters and EE Times have pointed out some added concerns.
EE Times notes that former Intel CEO Pat Gelsinger poured billions of dollars into the foundry business to compete with TSMC, with the 18A process node at the forefront of this highly ambitious initiative.
Intel, appears to have lost the AI market to Nvidia and lost market share in PC and server chips to AMD, and is thus battling on multiple fronts. While 2024 marked Intel’s first unprofitable year since 1986, Intel has now posted its sixth consecutive quarterly loss, amounting to $1.25 billion during the second quarter of 2025.
Reuters reported that “Intel warned investors that it may have to get out of the chip manufacturing business if it does not land external customers to make chips in its factories”.
[ In all fairness, I guess that can be said for any company, i.e if you make something and no one buys it you won’t be in business long.]
Customers for the company’s so-called 14A manufacturing process are crucial to the success of the technology – so much so that if it fails to secure a big one, Intel has reported that it could shut down its cutting-edge manufacturing business altogether, according to Intel’s quarterly filing. New CEO Lip-Bu Tan said “Going forward, our investment in Intel 14A will be based on confirmed customer commitments.”
Tan reportedly stated that without a significant customer, it would consider cancelling or pausing development of 14A and subsequent technologies, and, if the company took that step, it planned to continue to manufacture chips with its 18A technology and a variant through 2030. The public filing said the consequences of a decision to halt internal manufacturing would mean that over time, Intel would become dependent on Taiwan’s TSMC for contract manufacturing, or foundry, services.
Samsung is Considering their Advanced Packaging Line in Texas
According to the Korea Economic Daily, Samsung is reportedly considering further investment in its Taylor, Texas plant.
Specifically, the company is reportedly considering an advanced packaging line alongside its current foundry and R&D facilities.
Samsung recently secured a $16.5B contract to produce Tesla’s AI6 chips at the site. The AI chips are the centerpiece of Tesla’s push to move from an automaker to an AI and robotics company.
Samsung is reportedly fast-tracking the production line at its Taylor, Texas foundry. Reportedly the company aims to complete the cleanroom and begin equipment installation by the end of the year. The current schedule calls for production in the second half of 2026.
Since these chips require advanced packaging to integrate AI memory like HBM, the need to establish such capabilities in Taylor has become more important. IFTLE readers note this is the same issue IFTLE has reported on concerning TSMC at their Arizona facility, i.e making advanced node chips in Arizona is required but not sufficient since these chips require advanced packaging. Shipping the chips back to Taiwan (or in this case Korea) for packaging is just not an acceptable solution.
Reports indicate that such an advanced packaging facility, at Samsung’s Texas campus, would cost Samsung an additional investment of approximately $7B. Samsung spokesman stated the company is reviewing various U.S. investment options, but that no concrete plans have yet been finalized.
The 3-Day IMAPS Onshoring Workshop will include sessions on CHIPS NAPMP, Commercial and DIB Industry Advanced Packaging Perspective, EDA Heterogeneous Integration and Advanced Packaging, RESHAPE, DPA Title III, DARPA Minitherms3D, DIB Advanced Packaging, and Prototyping ME Commons Packaging.
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