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One year into his tenure, Intel CEO Lip-Bu Tan struck a markedly different tone on the company's outlook. At the first-quarter 2026 earnings call, he said the debate a year ago centred on whether Intel could survive. Today, the focus has shifted to how quickly it can expand capacity and scale its supply chain to meet surging demand.
That shift reflects a dramatic change in sentiment. After Pat Gelsinger was removed, Tan took over at a low point, when industry voices, including former board members, openly questioned whether Intel should split its businesses or spin off manufacturing assets.
Momentum began to turn within months. In August 2025, the US government acquired a 10% stake in Intel, with President Donald Trump describing the move as critical to national security and domestic industry.
For several years, Nvidia dominated the narrative, with GPUs emerging as the backbone of AI model training and widely seen as the future of the semiconductor industry. Intel's CPU demand is now recovering, signalling a potential return to relevance in a market it once defined.
At the same earnings call, Tan made a notable point of naming TSMC(2330.TW) as a key partner, underscoring decades-long ties with founder Morris Chang and chairman C.C. Wei.
He said Intel will pursue a multi-foundry strategy, combining internal and external capacity while refining partnerships to benefit customers. With CPU supply currently tight, product teams will decide which foundry offers the best fit for each workload.
Chief financial officer David Zinsner added that while capacity constraints persist, Intel is leveraging external foundry resources and allocating supply flexibly based on demand. Tan's close relationships with partners have become a key lever in mobilising that capacity.
In November 2025, TSMC filed a lawsuit against Lo, citing alleged breaches of confidentiality and non-compete agreements, and claiming a high likelihood that trade secrets or sensitive information could be brought to Intel. Tan has firmly denied the allegations, but the legal dispute continues.
Lo's value lies in his breadth of experience across research, technology, and strategy at TSMC. He understands not only how advanced process technologies are developed, but how they are translated into deliverable products and commercialised with customers. More critically, he has first-hand insight into the gap between laboratory breakthroughs and stable mass production.
That gap is often decisive. Technologies proven in R&D do not always translate into scalable manufacturing. Even when production is possible, yields may remain too low for commercial viability. And when yields improve, convincing customers of delivery reliability and capacity commitments becomes another hurdle.
Lo is deeply familiar with TSMC's technology roadmaps, manufacturing processes, and customer relationships. For Intel, that makes him more than a technical expert. He serves as a strategic lens into how a leading foundry aligns technology, yield, capacity, and customer trust.
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https://www.digitimes.com/news/a20260504PD221/intel-tsmc-fab-capacity-earnings.html
That shift reflects a dramatic change in sentiment. After Pat Gelsinger was removed, Tan took over at a low point, when industry voices, including former board members, openly questioned whether Intel should split its businesses or spin off manufacturing assets.
Momentum began to turn within months. In August 2025, the US government acquired a 10% stake in Intel, with President Donald Trump describing the move as critical to national security and domestic industry.
For several years, Nvidia dominated the narrative, with GPUs emerging as the backbone of AI model training and widely seen as the future of the semiconductor industry. Intel's CPU demand is now recovering, signalling a potential return to relevance in a market it once defined.
At the same earnings call, Tan made a notable point of naming TSMC(2330.TW) as a key partner, underscoring decades-long ties with founder Morris Chang and chairman C.C. Wei.
He said Intel will pursue a multi-foundry strategy, combining internal and external capacity while refining partnerships to benefit customers. With CPU supply currently tight, product teams will decide which foundry offers the best fit for each workload.
Chief financial officer David Zinsner added that while capacity constraints persist, Intel is leveraging external foundry resources and allocating supply flexibly based on demand. Tan's close relationships with partners have become a key lever in mobilising that capacity.
The Wei-Jen Lo factor and Intel's foundry learning curve
Behind Intel's renewed push lies a less visible figure: Wei-Jen Lo, a veteran who retired from TSMC in July 2025 and later rejoined Intel. His role in shaping Intel's strategy remains opaque, but his influence is widely noted within the industry.In November 2025, TSMC filed a lawsuit against Lo, citing alleged breaches of confidentiality and non-compete agreements, and claiming a high likelihood that trade secrets or sensitive information could be brought to Intel. Tan has firmly denied the allegations, but the legal dispute continues.
Lo's value lies in his breadth of experience across research, technology, and strategy at TSMC. He understands not only how advanced process technologies are developed, but how they are translated into deliverable products and commercialised with customers. More critically, he has first-hand insight into the gap between laboratory breakthroughs and stable mass production.
That gap is often decisive. Technologies proven in R&D do not always translate into scalable manufacturing. Even when production is possible, yields may remain too low for commercial viability. And when yields improve, convincing customers of delivery reliability and capacity commitments becomes another hurdle.
Lo is deeply familiar with TSMC's technology roadmaps, manufacturing processes, and customer relationships. For Intel, that makes him more than a technical expert. He serves as a strategic lens into how a leading foundry aligns technology, yield, capacity, and customer trust.
................................................................................
https://www.digitimes.com/news/a20260504PD221/intel-tsmc-fab-capacity-earnings.html
