Pat Gelsinger came back to turn Intel around. Here’s how it’s going. Listen and subscribe to DecoderPod.
) equipment provider. We have committed in a big way to EUV. That was a fundamental mistake that Intel made.We were betting against it. We had taken a lot of risk in Intel 10 when we were like, “Hey, we don’t need EUV. We will go to advanced quad patterning of the lithography.” We were doing other things to avoid needing EUV, and those things just weren’t panning out. It might have been a good decision when we did it, but as those things slipped, we were on the wrong side of EUV.
With every one of these different aspects of the company, I want people that I can put in the chair that know what to do to go a certain direction. We have so much work to get done, both for Intel and the industry. We don’t have time to say, “Let’s do some on-the-job training.” We need to go, and we need to go quickly. We reorganized the company in a very specific way, around six business units.
Every structure has inherent tradeoffs in it. It sounds like you kind of cleaned the slate and drew a new structure for Intel. In your mind, what are the tradeoffs of this structure? I want to push on that. That is a big decision that also directly plays into the geopolitical nature of your role, which we talked about at the beginning. Let’s just abstract into the classicWe have laid out a strategy. To me, that is not a one-year, one-quarter strategy; this is a decade-long strategy that we have laid out. We have called itwhere we are going to rebuild manufacturing, engineering, culture process, technology, etc.
The past and the data needs to inform the future. Let’s just make an example. We are working on 18A, and I have regular data updates. When you are developing a new process technology, you are fighting defect density and transistor performance. You are always pushing the envelope upward as you try to converge to the process technology target. History has shown us that we can get so much percentage, per quarter improvements, on those two vectors.
The act passed in July, and it’s $52 billion for chip manufacturing in the United States. There are not a lot of companies that make chips, so Intel is going to receive a lot of that. You have to do Foundry Services just to live up to the policy nature of the bill, which is more chips you made in the United States, not just Intel chips.
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