Former Intel CEO Pat Gelsinger praised his successor Lip-Bu Tan and the chipmaker's foundry business during a CNBC interview. Intel's contract manufacturing strategy is gaining traction through partnerships with Tesla, SpaceX, Alphabet, and Apple. Gelsinger reflected on the foundry strategy he announced in 2021, stating the initial plan had a five-year timeline to integrate the different components, with the former CEO saying he feels 'delighted' to have played a role in the journey as the company executes on the manufacturing transformation he initiated.
Gelsinger Says Intel Lethally Positioned for AI Chip Demand
Gelsinger said he thinks Intel is 'lethally positioned' to help manufacture more semiconductors to meet growing demand driven by artificial intelligence. 'The world needs more semiconductors, the U.S. needs more semiconductors. Intel is lethally positioned for that to happen,' he stated during the interview.
The former CEO reflected on the foundry strategy he announced in 2021, saying the initial plan had a five-year timeline to stitch together the different pieces of the puzzle. 'Clearly, when we started that journey, I said it was five plus years to get the process technology, the capital in place, the mechanisms for foundry. Here we are, it's about five years and all of those things are coming true. To me, that's just an affirmation of the strategy,' Gelsinger added.
Intel has partnered with Tesla, Space Exploration Technologies Corp., Alphabet, and Apple to manufacture chips for them. Intel shares were down nearly 5% in Wednesday's pre-market trade.
Former CEO Supports U.S. Government Stake in Intel
Gelsinger said he was not opposed to the U.S. government taking a stake in the company. 'So far, that's worked well for Intel. The shareholders will be happy, the company will be happy, the industry views this as a positive thing,' he stated.
He believes this tool should not be used in all cases, adding that this is one of the ways to accomplish the government's industrial policy objectives of bringing manufacturing back to the U.S.
The U.S. government picked up a 9.9% stake in Intel in August 2025 in an $8.9 billion deal, taking ownership of 433.3 million shares at a purchase price of $20.47 per share. Intel shares have soared 439% since the government stake acquisition.
Intel IDM 2.0 Strategy Details from 2021 Announcement
Gelsinger unveiled Intel's IDM 2.0 strategy in 2021, an overhaul of Intel's manufacturing model aimed at restoring its technology leadership. The plan rested on three pillars: continuing to manufacture most Intel chips in-house, increasing the use of third-party foundries where it made strategic sense, and building a contract chipmaking business through the newly launched Intel Foundry Services.
As part of the strategy, Intel committed roughly $20 billion to build two new semiconductor fabrication plants in Arizona, while outlining broader capacity expansion plans across the U.S. and Europe.
Intel stock is up 199% year-to-date and 402% over the past 12 months.
FAQ
What is Intel's foundry strategy that Pat Gelsinger announced in 2021?
Gelsinger unveiled Intel's IDM 2.0 strategy in 2021, which included three pillars: manufacturing most Intel chips in-house, using third-party foundries strategically, and building a contract chipmaking business through Intel Foundry Services. The plan included a $20 billion commitment to build two semiconductor fabrication plants in Arizona with broader expansion plans across the U.S. and Europe.
When did the U.S. government acquire a stake in Intel?
The U.S. government picked up a 9.9% stake in Intel in August 2025 through an $8.9 billion deal, acquiring 433.3 million shares at a purchase price of $20.47 per share. Intel shares have increased 439% since this government stake acquisition.
How has Intel stock performed recently?
Intel stock is up 199% year-to-date and 402% over the past 12 months. However, Intel shares were down nearly 5% in Wednesday's pre-market trade at the time of Gelsinger's CNBC interview.
