Intel: A Dynasty That Dominated the PC Era, Now Struggling to Keep Up with Changing Times. A Struggle for Rebuilding!
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| Intel |
[Posting: 2025.05.11] Once the undisputed leader in semiconductor sales and market capitalization, Intel has faced a dramatic shift, recording a massive $11.6 billion loss in 2024 as it struggled to adapt to the new paradigm shift from PC to AI.
While other fabless companies leveraged TSMC's advanced processes to produce competitive chips, Intel relied on its own in-house fabrication, failing to maintain technological superiority. As a result, the company lost significant market share in the PC segment to competitors like AMD. Furthermore, its transition to cloud and AI technology was slow, leaving it as a latecomer in the rapidly evolving market.
Intel is attempting to make a technological transformation through Intel Foundry Service (IFS), but it must narrow the technological gap with TSMC and Samsung Foundry. Even if it develops advanced technologies, the challenge of achieving high yield rates remains. Intel aims to leverage its Gate-All-Around (GAA) process technology to compete both as a PC manufacturer and a foundry service provider.
As a U.S.-based company, Intel has the advantage of receiving government subsidies. With the potential support from the U.S. government, especially under the Trump administration, Intel may have the opportunity to close the technology gap quickly. Although it may not immediately reach TSMC's level, it could potentially position itself as a competitor to Samsung Foundry.
The rise and fall of great companies like Nokia in the mobile sector demonstrate that there are no eternal winners in the technology industry. Only those who embrace trends and drive innovation can survive in this rapidly changing world.
Intel Corporation: History, Revenue, Products, and Restructuring Summary (2020-2025)
📌 Overview of Intel Corporation
Intel Corporation was founded in 1968 in California, USA, by Robert Noyce and Gordon Moore. Initially known for its microprocessor development, Intel became a global leader in the PC market with its x86 architecture CPUs. In recent years, Intel has diversified its business to focus on AI, data centers, and foundry services.
📊 Intel’s 5-Year Revenue and Operating Income (2020–2024)
| Year | Revenue (Billion USD) | Operating Income (Billion USD) | Year-over-Year Growth |
|---|---|---|---|
| 2020 | 77.87 | 23.68 | +8% |
| 2021 | 79.02 | 19.53 | +1% |
| 2022 | 63.05 | 23.34 | -20% |
| 2023 | 54.22 | 0.93 | -14% |
| 2024 | 53.10 | -11.68 | -2% |
📌 Intel’s Product Portfolio and Applications
Core Series: Desktop and laptop CPUs (i3, i5, i7, i9), with the latest Core Ultra series featuring AI NPU integration.
Xeon Series: High-performance server CPUs for data centers and cloud services.
Gaudi Series: AI accelerators for deep learning and machine learning.
Altera FPGA: Programmable semiconductors for various applications.
Mobileye: SoCs for autonomous driving.
Intel GPU (Arc Series): Graphics processing units for gaming and workstations.
🧩 Intel Product Models and Foundry Partners by Technology
| Product Model | Manufacturing Process | Foundry Partner |
|---|---|---|
| Core Ultra Series 1 | Intel 4 | Intel In-House |
| Core Ultra 200V Series | Intel 4 | Intel In-House |
| Arrow Lake (Core Ultra 200S) | 3nm | TSMC |
| Sierra Forest (Xeon 6) | Intel 18A | Intel In-House |
| Gaudi AI Accelerator | 7nm | Intel In-House |
| Altera FPGA | 28nm | TSMC, UMC |
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Intel Foundry Services (IFS): In-house manufacturing capabilities.
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TSMC: 3nm and 5nm process (high-performance CPUs and AI chips).
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UMC: 12nm and 28nm process (Legacy and industrial applications).
💰 Intel Employee Salary Information
| Job Title/Level | Average Salary (USD) |
|---|---|
| Overall Average | $104,315 |
| Software Engineer (Mid-Level) | $230,000 |
| Software Engineer (Top-Level) | $818,000 |
| Manufacturing Technician | $61,170 |
| Project Coordinator | $70,000 |
| Operations Director | $216,812 |
Key Highlights:
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Top-level software engineers can earn up to $818,000.
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Competitive salaries are offered in the semiconductor manufacturing sector.
📌 Intel 2024 Key Strategies and Outlook
🔹 Strengthening AI and High-Performance Computing (HPC)
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Targeting the AI and HPC markets with Core Ultra, Gaudi, and Xeon series.
🔹 Expanding Foundry Business
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Collaborating with global cloud giants like Microsoft and Amazon.
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Enhancing partnerships with external foundries, including TSMC and UMC.
🔹 Enhancing Manufacturing Capabilities
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Developing and commercializing Intel 18A process technology.
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Expanding foundry manufacturing facilities in the United States and Europe.
📌 Key Restructuring Measures (2024-2025)
Massive Layoffs: 15,000 employees laid off in 2024, with an additional 20% workforce reduction planned in 2025.
Leadership Change: Lip-Bu Tan appointed as the new CEO in 2025.
Foundry Division Spin-off: The foundry business is being spun off as a separate subsidiary for greater flexibility.
Construction Delays: European and Asian factory construction projects delayed by two years to reduce capital expenditure.
Operational Cost Reduction: Targeting $17 billion in operating expenses for 2025, and $16 billion by 2026.
📌 Conclusion
Intel Corporation is undergoing a significant transformation to restore its competitiveness in the semiconductor industry. With a focus on AI, high-performance computing, and strategic cost management, Intel aims to regain its leadership position despite recent financial challenges.
