Intel’s Strategic Shift in Chip Manufacturing
Intel Corporation (NASDAQ: INTC), the leading manufacturer of x86 CPUs, is taking significant steps to regain its competitive edge against Taiwan Semiconductor Manufacturing Company (TSMC) by adopting ASML’s high-NA extreme ultraviolet (EUV) lithography systems. Under new CEO Lip Bu-Tan, who took over in March 2025, Intel plans to deploy these systems, which cost up to $400 million each, to produce 14A chips by 2027 and 2028. This initiative comes as Intel seeks to reverse a downward trend in stock performance, with its shares falling 13% over the past five years, while the S&P 500 rose by 83% during the same period.
Between Q3 2018 and Q3 2025, Intel’s share of the desktop x86 CPU market decreased from 87% to 66.4%, while AMD’s share surged from 13% to 33.6%. Intel’s shift to modernize its manufacturing infrastructure is viewed as critical, with analysts predicting a net loss widening from $267 million in 2025 to $400 million in 2026, marking its third consecutive year of unprofitability. Despite this, a projected net profit of $2.3 billion in 2027 suggests potential recovery, contingent on the success of its investments in next-generation lithography.
