Intel Panther Lake Chip Launch Marks Major Milestone in U.S. Manufacturing Push
Intel launched its new Panther Lake chip on the International Consumer Electronics Show stage. Fabricated on the 18A process technology of the company, the chip is a key milestone in the company's plan to recapture its leadership in advanced semiconductor manufacturing and pioneer the reshoring of advanced chip manufacturing to America.
Government Interest and Reaction from Markets
Almost immediately after the announcement, major government interests in the company emerged. Since the U.S. government purchased a 10% stake in Intel, the company's stock had a whopping rise of 94% in the past half a year. The development was also noted by Gelsinger, who said,
"The national champion has the U.S. government participating in it. And, obviously, the stock market has seen that favorably."
The Foundry Challenge Bringing Back Manufacturing
One of the major parts of Intel's plan under Gelsinger during his tenure has been to grow the foundry for other companies' chips. With a view to persuading major customers such as AMD, NVIDIA, Qualcomm, and Apple to come into Intel's foundries in the U.S., this is the purpose of Intel's foundry business.
Gelsinger spoke to how hard this will be given that it took decades to have that manufacturing slip to Asia,
"And it doesn't come back quickly."
He insisted that winning those big customers will be the true determination of success. How are they to be secured, then. By getting the customers to see how beneficial it is to manufacture on U.S. soil, supported by favorable government.
AI's Energy Crisis is Upon Us
Another major challenge coming for all tech is added to the AI one the energy it consumes. Gelsinger said that, historically, U.S. energy capacity increases of 1-2% yearly have now been propelled by the AI industry to an increase of 4% each year.
He juxtaposed that, while currently having 39 nuclear reactors under construction, the U.S. has none.
"If our chips are more powerful but we don't have the energy to power them, then the A.I. will move to other places," Gelsinger warned. "We will lose the A.I. race without enough energy."
Investments and AI Futures
Now a general partner in the venture capital firm Playground Global, Gelsinger addressed concerns about a potential AI investment bubble. With regard to the high valuations, he acknowledged, nonetheless, that he retained basic confidence, as the AI sector is backed by "real revenue, real balance sheets."
He pointed out that the physical limitation of energy capacity serves as a natural brake to avoid the market from getting "too crazy." Presently, his firm is focused on investing into companies that enhance energy efficiency for AI chips and power delivery systems.
