Big Trouble Inside Intel Top Bosses Disagree on Chip Making's Path
There's big trouble up top at Intel, causing issues and halting key plans, says The Wall Street Journal. The problem is about a plan from Frank Yeary, Executive Chair, to either sell or break off Intel's chip-making section, Intel Foundry. CEO Lip-Bu Tan doesn't like this plan at all.
The Plan Sell or Team Up on Intel Foundry
Frank Yeary, once a big-time banker, had two main ideas for Intel Foundry. The first was to turn the unit into its own firm, teaming up with big names like TSMC, Broadcom, and Nvidia. The more bold move was to sell all or part of the foundry to TSMC, handing them the keys to boost Intel's making tech.
CEOs View Keep Chip Making to Stay Ahead
CEO Lip-Bu Tan, in charge since March 2025, fought these ideas hard. He said keeping chip making within Intel is key to stay competitive and keep U.S. tech safe. While some board folks liked Yeary’s ideas, Tan’s strong no caused a split in the group.
Why TSMC Didnt Bite
The deal hit big snags, especially because TSMC wasn't keen on the idea. Here’s why:
- Tech Issues TSMC folks didn't know Intel's special EUV tech well. Both firms use gear from the same provider, ASML, but their tools and setups are very different.
- Business Sense TSMC saw little gain in spending billions to boost a rival. Also, they weren’t sure if Intel’s U.S. EUV setup could meet both firms' needs.
- Changing Times TSMC's big U.S. investment plan made teaming up with Intel less appealing, even as a way to sidestep possible tariffs.
The Impact Big Delays and More Pressure
Though the sale idea fell through, the fight hurt a lot. Long talks and clashes meant big delays for CEO Lip-Bu Tan’s plans. Two big efforts were affected:
- Trying to get billions from Wall Street to boost production.
- Aiming to buy a smart AI firm to compete with Nvidia and AMD. During the wait, another firm snapped up the startup.
This mess has slowed Intel down and added stress on Tan’s job, even with the board still backing him.
