Lip-Bu Tan’s Big Bet: Can He Rebuild Intel and Restore U.S. Tech Dominance?

Intel’s Big Comeback: Can Its Foundry Business Shape the Future of U.S. Chipmaking?

By Chandrakumar Pillai

After several tough years of declining profits, missed deadlines, and global competition, Intel is finally showing signs of recovery.

In its third-quarter 2025 results, Intel not only beat Wall Street expectations but also reminded the world why it remains one of the most strategically vital tech companies on the planet. With $13.7 billion in quarterly revenue and $4.1 billion in net income, the once-struggling semiconductor giant seems to be stabilizing.

But the real story isn’t just about a financial turnaround — it’s about what comes next.

At the heart of Intel’s comeback lies its foundry business — a unit that could determine whether the U.S. can reclaim leadership in global semiconductor manufacturing.

💰 Intel’s Surprising Comeback Story

Intel’s latest earnings report paints a picture of cautious optimism. The company’s revenue jumped by $800 million in the third quarter compared to last year, reversing what had been a painful streak of quarterly losses.

So, what fueled this turnaround?

A mix of strategic cost-cutting, divestments, and massive external investments — some of which were unprecedented in Intel’s history.

Let’s break it down:

• SoftBank invested $2 billion in Intel in August.
• Just days later, the U.S. government made a historic move — taking a 10% equity stake in Intel.
• Nvidia followed, buying a $5 billion stake in September to collaborate on future chip development.
• Intel also sold its stakes in Altera and Mobileye, adding another $5.2 billion to its balance sheet.

In total, Intel added $20 billion in cash last quarter — money that gives CEO Lip-Bu Tan the breathing room to execute an ambitious recovery plan.

“The actions we took to strengthen the balance sheet give us greater operational flexibility,” said Tan. “I’m honored by the trust President Trump and Secretary [Howard] Lutnick have placed in me. Their support highlights Intel’s strategic role as the only U.S.-based semiconductor company with leading-edge R&D and manufacturing.”

This is not just a corporate recovery — it’s a national priority.

🇺🇸 Why the U.S. Government Is Betting Big on Intel

The U.S. government’s 10% equity stake is a major turning point — and a bold message.

Semiconductors power everything from smartphones and cars to AI systems and fighter jets. Yet, over 70% of chip production happens in Asia, mainly in Taiwan and South Korea.

Intel, as America’s last major semiconductor manufacturer, is being positioned as the cornerstone of a new industrial policy — one that prioritizes technological sovereignty and national security.

The government’s $8.9 billion investment (of which $5.7 billion is already disbursed) isn’t just financial; it’s strategic.

But there’s a catch.

Intel must not divest from its foundry business for at least five years — a clause designed to ensure that U.S. chipmaking capacity continues to grow domestically.

That’s because Intel Foundry isn’t just another division — it’s the linchpin of America’s semiconductor future.

🏭 The Foundry Business: Intel’s High-Stakes Gamble

Intel’s foundry business manufactures chips for other companies — similar to what TSMC does for Apple, AMD, and Nvidia.

But so far, Intel’s foundry journey has been bumpy. Despite massive investments, delays and inefficiencies plagued the division. It struggled to attract external clients and lagged behind Asian rivals in process innovation.

That’s why Tan has made it his top priority. He’s already initiated major restructuring and layoffs to streamline operations and rebuild trust with potential customers.

“Building a world-class foundry is a long-term effort founded on trust,” Tan said. “As a foundry, we need to ensure our process can serve a variety of customers. We must learn to delight our customers — to meet all their needs for performance, yield, cost, and schedule.”

In simple terms: Intel must learn to become a service company, not just a chip designer.

And that’s a cultural shift as big as any technical one.

⚙️ Why Foundries Matter — More Than Ever

Foundries are the engine rooms of the AI era. Every major AI chip — from Nvidia’s GPUs to Google’s TPUs — relies on advanced semiconductor manufacturing.

Intel’s foundry business gives the U.S. a rare opportunity to reduce dependency on Asia and secure its AI supply chain.

But execution is everything.

• Can Intel build chips as efficiently as TSMC or Samsung Foundry?
• Will tech companies trust Intel to manufacture their most sensitive designs?
• And can Intel make this business profitable while maintaining innovation speed?

These are the questions Wall Street — and Washington — are asking.

🔍 Lip-Bu Tan’s Leadership: From Venture Visionary to Corporate Rescuer

Lip-Bu Tan is not your typical corporate CEO. He’s a venture capitalist, the founder of Walden International, and former chairman of Cadence Design Systems.

His appointment in 2024 raised eyebrows — but also hope.

Tan brings a deep understanding of the semiconductor ecosystem and a vast global network of tech relationships. His job isn’t just to make Intel profitable again — it’s to rebuild trust among investors, governments, and customers.

So far, the signs are promising. Intel’s latest results show Tan’s strategy is beginning to work. But the real test will be whether Intel’s foundry business can scale — and attract long-term clients.

🌏 Global Implications: The New Chip War

Intel’s revival isn’t happening in isolation.

• TSMC continues to dominate advanced manufacturing, especially at 3nm and below.
• Samsung is doubling down on its foundry ambitions.
• China, despite U.S. export restrictions, is rapidly expanding domestic chip capacity.

Intel’s foundry success — or failure — will influence the geopolitical balance of technology power for years to come.

If Intel succeeds, it could shift chipmaking leadership back toward the U.S. If it fails, America’s dream of semiconductor independence could collapse.

💬 Questions to Spark Discussion

• Can Intel realistically compete with TSMC and Samsung in advanced chip manufacturing?
• Should governments continue taking equity stakes in strategic tech companies?
• Will Intel’s foundry business become a success story — or another missed opportunity?
• How does national interest intersect with corporate performance in the AI age?
• Is Intel’s transformation proof that traditional giants can reinvent themselves in the era of AI and geopolitics?

🔮 The Road Ahead

Intel’s comeback story is not a fairy tale — it’s a calculated, high-stakes turnaround.

Billions in investments, deep government involvement, and a clear focus on the foundry business have given the company a second chance.

But success will depend on more than financial capital — it will depend on execution, partnerships, and trust.

As Tan said, building a world-class foundry takes time. And trust, once lost, must be earned wafer by wafer.

If Intel can pull this off, it won’t just save a company — it could redefine the future of American innovation and industrial resilience.

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Reference: Tech Crunch