Intel CEO reveals plans to create 'AI chips for all' in bid to regain market position.

• CEO Pat Gelsinger stated at the Computex tech conference in Taipei on Tuesday that the company aims to construct AI chips for everyone using U.S. factories.
• Samsung surpassed Intel as the world's largest chipmaker in 2017 based on revenue.
• Gelsinger stated that the Xeon 6 processor was a significant advancement in our competitiveness, enabling us not only to retain our market position but also to regain some of the market share opportunities we had lost.

After being surpassed by TSMC and Samsung as the world's top chipmaker, CEO Pat Gelsinger stated his intention to reclaim that position.

Gelsinger stated on CNBC at the Computex tech conference in Taipei on Tuesday that the company aims to construct AI chips for everyone using U.S. factories.

To improve its underperforming foundry business, Intel aims to reduce its $7 billion operating loss in 2023 compared to the previous year. Despite being ranked seventh in revenue among foundries, according to a May 22 report by Counterpoint Research.

From 2017 to 2023, the world's largest chipmaker was Samsung Electronics, but in 2023, Taiwan Semiconductor Manufacturing Company surpassed Samsung to become the world's largest foundry by revenue.

Gelsinger stated that the key to overcoming losses is to regain leadership through the adoption of competitive process technology.

The Biden administration is expected to provide up to $19.5 billion in funding for Intel's semiconductor manufacturing and research and development through the CHIPS and Science Act.

Gelsinger stated that the capital is crucial and that economic competitiveness is necessary to construct factories in the U.S. The Chips Act has leveled the playing field for building factories in Asia and the U.S.

Intel, which produces chips, aims to catch up with Meta, Microsoft, and Google, which have been at the forefront of the AI industry, after having largely been on the sidelines of the AI frenzy that saw these tech giants buying up Nvidia chips.

At the Computex tech conference in Taipei on Tuesday, Gelsinger announced the new Xeon 6 processor for data centers, which boasts enhanced performance and power-efficiency compared to its predecessor.

Gelsinger stated that Xeon 6 was a significant advancement in our competitiveness, enabling us not only to retain our market position but also to regain some of the market share opportunities we had lost.

As we complete that process and regain leadership in chip manufacturing, we will achieve greater profitability.

China remains a big market

Despite Washington's efforts to limit chip sales to China and Beijing's push to reduce foreign reliance in the semiconductor sector, China remains a crucial market for most U.S. chipmakers, including Intel.

Intel is investing in China to make it a big market for the company in the future, as stated by Gelsinger.

"To build compelling products, we must navigate carefully, ensure compliance with the laws of both countries, and build products that meet the needs of our customers."

In March, data from S&P Global revealed that all U.S. chip giants, including Intel, Broadcom, Qualcomm, and Marvell Technology, generate more revenue from China compared to the U.S.