Can Intel Lead the U.S. Semiconductor Comeback?

A Shifting Global Landscape

The semiconductor industry—once a behind-the-scenes engine of modern technology—is now at the forefront of global politics and economic strategy. Chips power everything from smartphones and cars to AI systems and military hardware, making them the new oil in an increasingly digitized world.

Yet today, over 80% of advanced semiconductor manufacturing takes place in Asia, primarily Taiwan and South Korea. This geographic concentration has created a vulnerability that Western governments, especially the U.S., are now racing to address.

America First: The Push for Chip Independence

Under the renewed "America First" initiative, former President Donald Trump and current bipartisan consensus have made semiconductor independence a top national priority. The goal: bring chip manufacturing back to U.S. soil to reduce reliance on foreign nations—particularly China—and secure the tech supply chain.

This vision culminated in the CHIPS and Science Act, which allocates $52 billion in subsidies and incentives to companies investing in U.S.-based semiconductor manufacturing.

Intel: The Homegrown Champion

Among all U.S. chip companies, Intel is the one best positioned to fulfill this national ambition. Unlike AMD, NVIDIA, or Qualcomm—which design chips and outsource production—Intel both designs and manufactures its semiconductors. That distinction makes it critical to U.S. strategy.

Years ahead of many, Intel began building out domestic capacity as early as 2021, with flagship projects including:

A $20 billion mega-fab in Ohio (among the largest in the world),
Expansion of sites in Arizona and New Mexico,
Major investments in Germany and Israel as part of its global foundry footprint.

This forward-thinking approach gives Intel a first-mover advantage as the U.S. races to reclaim chip manufacturing leadership.

2024: Financial Turmoil Meets Strategic Commitment

Despite its strategic role, Intel’s financial performance in 2024 was troubling:

Revenue: $53.1 billion (down 2% YoY),
Net loss: $18.76 billion—driven by tax write-downs, restructuring, and impairments,
Dividends suspended until 2026 due to CHIPS Act compliance,
Yet still invested $25.1 billion in CapEx and $16.5 billion in R&D.

The deteriorating financials, alongside missed innovation timelines in previous years, prompted Intel’s board to remove CEO Pat Gelsinger. A leadership reset was needed.

A New CEO and A New Direction

In March 2025, Lip-Bu Tan, former CEO of Cadence Design Systems and a seasoned semiconductor veteran, was appointed as Intel’s new CEO.

His strategic agenda is bold:

Overhaul Intel’s manufacturing to make it more agile and client-focused,
Streamline operations by cutting bureaucracy and flattening management layers,
Double down on AI, positioning Intel as a credible alternative to NVIDIA through its Gaudi 3 accelerators,
Expand Intel’s foundry business, producing chips not just for itself, but for firms like Amazon Web Services and others.

Tan backed his vision with personal conviction—investing $25 million of his own money into Intel stock.

What Comes Next? Forecasting Intel’s Future

Intel’s fate now depends on two key variables:

Execution: Can it deliver on its advanced 18A process node and large-scale U.S. fabs by 2025–2026?
Demand: Will the U.S. government and major AI/cloud players funnel enough business to make Intel’s foundry model sustainable?

If successful, Intel could become the U.S. tech industry's equivalent of Boeing—a national asset and industrial cornerstone.

But risks remain. Competitors like NVIDIA dominate AI. TSMC still leads in advanced nodes. And market trust needs to be rebuilt.

Bottom Line

Intel is no longer just a chip company—it’s a geopolitical play. With the U.S. government behind it, a new CEO at the helm, and billions already invested in infrastructure, Intel is poised for a potential comeback.

Intel may not be the flashiest stock today, but for long-term investors betting on U.S. semiconductor independence, it might just be the most important one.