ASSESSMENTS

The U.S. Semiconductor Industry's Strategic Challenges

Oct 15, 2024 | 20:34 GMT

The sample of an Intel chip is displayed during Computex 2024 in Taipei on June 4, 2024.
The sample of an Intel chip is displayed during Computex 2024 in Taipei on June 4, 2024.

(I-HWA CHENG/AFP via Getty Images)

U.S. chipmaker Intel's bold strategy to reclaim its market dominance will likely encounter technological and commercial challenges, while the strategy's potential failure would undermine the United States' goal of boosting its semiconductor industry and likely cement the leadership of Taiwan Semiconductor Manufacturing Company (TSMC) atop the semiconductor pantheon. On Oct. 10, Intel formally unveiled its new flagship CPU from the Arrow Lake processor family, formally dubbed the Core Ultra 200S series of processors. The announcement capped off a challenging 10 weeks for the U.S. tech giant after it reported a $1.6 billion loss in the second quarter of 2024, which saw the company's shares drop by 26% on Aug. 2 (the largest single-day loss for Intel shares in 50 years). Since then, there have been even more signs the company is struggling to implement its ambitious strategy under CEO Pat Gelsinger to invest heavily into its foundry division and new...

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