<p>In a widely recognised ad campaign, Intel called its engineers “rock stars.” Its main branding for years was “Intel Inside,” and for a long time, that was true—nearly every personal computer came equipped with an Intel processor. But today, the company is effectively receiving a virtual bailout from the US government. How did this former semiconductor titan fall from grace? It’s a story of strategic mistakes, slow adaptation to technological shifts, and a global chip war increasingly dominated by China. Here’s how Intel went from captain to cautionary tale.</p><h2>What’s the current stock status of Intel? A decline in market cap</h2><p>As of August, Intel’s stock had dropped sharply from its 52-week high of around $51.28 to approximately $25—a fall of nearly 52 per cent. At the end of 2023, the company had a market capitalisation of roughly $210.5 billion. By mid-2025, that had fallen to about $90.6 billion, marking a decline of nearly 57 per cent.</p><p><a href="https://www.wionews.com/business-economy/nvidia-set-to-replace-intel-in-the-dow-jones-index-772924"><strong>Also read: Nvidia set to replace Intel in the Dow Jones Index</strong></a></p><p>&nbsp;</p><h2>Intel’s early years: The founding story</h2><p>Intel was founded on 18 July 1968 by pioneering engineers Robert Noyce and Gordon Moore, and was joined by venture capitalist Arthur Rock, who helped secure the company’s initial funding. Originally incorporated as NM Electronics, the name was later changed to Intel—short for “Integrated Electronics.” Noyce is credited as one of the inventors of the integrated circuit. Moore became widely known for Moore’s Law, a prediction that the number of transistors on a chip would double approximately every two years, improving performance while reducing cost. Together, the trio laid the foundation for one of the most influential technology companies in the world.</p><h2>Intel’s peak: The “rock star” era of the 2000s</h2><p>During the rise of the internet in the 2000s, Intel dominated the global tech landscape by supplying the hardware that powered most personal computers and laptops, including those made by Microsoft and Apple. In 2009, a marketing campaign presented Intel engineers—such as Ajay Bhatt, co-inventor of USB—as “rock stars,” elevating their image to that of cultural icons. The “Intel Inside” campaign, launched in the 1990s, had already made the company a household name and synonymous with high-performance computing.</p><h2>Intel missed two buses: Mobile chips and artificial intelligence</h2><p>Intel’s strong focus on personal computers ultimately contributed to its decline, as global computing shifted rapidly towards smartphones. Intel was not prepared for the mobile revolution, which was led by ARM-based processors developed by companies like Qualcomm. Intel’s processors consumed too much power and were unsuitable for mobile devices.</p><p>Under CEOs such as Paul Otellini, Brian Krzanich, and Bob Swan, Intel has been accused of prioritising short-term profits over innovation. For example, Krzanich delayed the adoption of extreme ultraviolet lithography (EUV), a move that allowed competitors to overtake Intel in advanced chip manufacturing. During Swan’s tenure, the company reportedly spent billions on stock buybacks instead of investing heavily in research and development.</p><p><strong>Also read: </strong><a href="https://www.wionews.com/business-economy/trump-administration-in-talks-to-take-stake-in-intel-amid-ohio-factory-delays-1755242765488"><strong>Trump administration in talks to take stake in Intel amid Ohio factory delays</strong></a></p><h2>Rise of AI chip makers: New Kids on the Block</h2><p>The artificial intelligence boom required high-performance processors, and formerly smaller players like Nvidia seized the opportunity with their graphics processing units (GPUs). In 2020, one of Intel’s key clients, Apple, began transitioning to its own M1 chips—designed in-house and manufactured by TSMC—dealing a significant blow to Intel’s market dominance.</p><p><a href="https://www.wionews.com/videos/intel-under-fire-over-ceo-s-china-ties-1754631887353/embed">https://www.wionews.com/videos/intel-under-fire-over-ceo-s-china-ties-1754631887353/embed</a></p><h2>How Intel lost ground amid global chip wars</h2><p>The chip wars of the 2020s were triggered by multiple factors, including geopolitical tensions between the US and China, growing demand for AI processing chips, and the global rollout of 5G technology. These factors created a perfect storm that caught Intel off guard. Its once-celebrated integrated design-and-manufacture model became a liability, while competitors like AMD gained market share by leveraging TSMC’s superior fabrication technologies.</p><p>Intel’s attempts to expand its foundry business faltered. Projects such as the development of glass substrates were scaled back, and the automotive chip division was shut down.&nbsp;</p><p>In 2024, CEO Pat Gelsinger was removed after Intel’s stock fell by 60 per cent. He was replaced by Lip-Bu Tan, and the company laid off up to 20 per cent of its workforce. Even prominent engineers such as Jim Keller exited.</p><p><a href="https://www.wionews.com/india-news/who-is-lip-bu-tan-why-did-donald-trump-demand-his-resignation-alleged-china-links-explained-1754577800317"><strong>Also read: Who is Lip-Bu Tan? Why did Donald Trump demand&nbsp;his resignation? China links explained</strong></a></p><h2>US government ‘bailout’ of Intel: A lender of last resort comes in</h2><p>Recognising Intel’s importance to national security and technological independence, the US government made a historic intervention under the 2022 CHIPS and Science Act. The company reportedly received up to 10.9 billion dollars—7.9 billion for commercial fabrication facilities in states like Arizona, New Mexico, Ohio, and Oregon, and 3 billion for producing military-grade chips under the Secure Enclave programme.</p><p>In August 2025, the Trump administration converted roughly 8.9 billion dollars of these grants into a 10 per cent equity stake in Intel, making the US government its largest shareholder.&nbsp;</p><p>The deal included non-voting shares and a 5 per cent warrant, which would allow the government to expand its stake if Intel’s foundry unit loses majority control.&nbsp;</p><p>Additionally, SoftBank invested 2 billion dollars in support of Intel’s turnaround efforts.</p><p>Critics have compared the government's move to the 2008 bailout of the US auto industry, warning that financial aid alone may not resolve Intel’s deeper challenges, such as its technological lag behind TSMC and Nvidia.</p><h2>Can Intel catch up in the near future?</h2><p>While a turnaround is not impossible, recent failures suggest caution. Intel has yet to attract major foundry clients like Apple or Nvidia. Its much-publicised Intel 18A process, set to launch in 2025, is already facing scepticism over whether it can match the performance and efficiency of competitors’ offerings.</p><p>A breakthrough innovation could still restore Intel’s standing, but as of now, its “rock star” era is clearly over. The company faces an uncertain future as it struggles to remain competitive in a global market increasingly dominated by faster-moving rivals—including those from China.<br>&nbsp;</p>

A series of strategic mistakes and the rise of China in chip-making contributed to the collapse of the legendary semiconductor firm which at one point had its hardware inside practically every computer. What went wrong? Here is what you should know

In a widely recognised ad campaign, Intel called its engineers “rock stars.” Its main branding for years was “Intel Inside,” and for a long time, that was true—nearly every personal computer came equipped with an Intel processor. But today, the company is effectively receiving a virtual bailout from the US government. How did this former semiconductor titan fall from grace? It’s a story of strategic mistakes, slow adaptation to technological shifts, and a global chip war increasingly dominated by China. Here’s how Intel went from captain to cautionary tale. What’s the current stock status of Intel? A decline in market cap As of August, Intel’s stock had dropped sharply from its 52-week high of around $51.28 to approximately $25—a fall of nearly 52 per cent. At the end of 2023, the company had a market capitalisation of roughly $210.5 billion. By mid-2025, that had fallen to about $90.6 billion, marking a decline of nearly 57 per cent. Also read: Nvidia set to replace Intel in the Dow Jones Index Intel’s early years: The founding story Intel was founded on 18 July 1968 by pioneering engineers Robert Noyce and Gordon Moore, and was joined by venture capitalist Arthur Rock, who helped secure the company’s initial funding. Originally incorporated as NM Electronics, the name was later changed to Intel—short for “Integrated Electronics.” Noyce is credited as one of the inventors of the integrated circuit. Moore became widely known for Moore’s Law, a prediction that the number of transistors on a chip would double approximately every two years, improving performance while reducing cost. Together, the trio laid the foundation for one of the most influential technology companies in the world. Intel’s peak: The “rock star” era of the 2000s During the rise of the internet in the 2000s, Intel dominated the global tech landscape by supplying the hardware that powered most personal computers and laptops, including those made by Microsoft and Apple. In 2009, a marketing campaign presented Intel engineers—such as Ajay Bhatt, co-inventor of USB—as “rock stars,” elevating their image to that of cultural icons. The “Intel Inside” campaign, launched in the 1990s, had already made the company a household name and synonymous with high-performance computing. Intel missed two buses: Mobile chips and artificial intelligence Intel’s strong focus on personal computers ultimately contributed to its decline, as global computing shifted rapidly towards smartphones. Intel was not prepared for the mobile revolution, which was led by ARM-based processors developed by companies like Qualcomm. Intel’s processors consumed too much power and were unsuitable for mobile devices. Under CEOs such as Paul Otellini, Brian Krzanich, and Bob Swan, Intel has been accused of prioritising short-term profits over innovation. For example, Krzanich delayed the adoption of extreme ultraviolet lithography (EUV), a move that allowed competitors to overtake Intel in advanced chip manufacturing. During Swan’s tenure, the company reportedly spent billions on stock buybacks instead of investing heavily in research and development. Also read: Trump administration in talks to take stake in Intel amid Ohio factory delays Rise of AI chip makers: New Kids on the Block The artificial intelligence boom required high-performance processors, and formerly smaller players like Nvidia seized the opportunity with their graphics processing units (GPUs). In 2020, one of Intel’s key clients, Apple, began transitioning to its own M1 chips—designed in-house and manufactured by TSMC—dealing a significant blow to Intel’s market dominance. https://www.wionews.com/videos/intel-under-fire-over-ceo-s-china-ties-1754631887353/embed How Intel lost ground amid global chip wars The chip wars of the 2020s were triggered by multiple factors, including geopolitical tensions between the US and China, growing demand for AI processing chips, and the global rollout of 5G technology. These factors created a perfect storm that caught Intel off guard. Its once-celebrated integrated design-and-manufacture model became a liability, while competitors like AMD gained market share by leveraging TSMC’s superior fabrication technologies. Intel’s attempts to expand its foundry business faltered. Projects such as the development of glass substrates were scaled back, and the automotive chip division was shut down. In 2024, CEO Pat Gelsinger was removed after Intel’s stock fell by 60 per cent. He was replaced by Lip-Bu Tan, and the company laid off up to 20 per cent of its workforce. Even prominent engineers such as Jim Keller exited. Also read: Who is Lip-Bu Tan? Why did Donald Trump demand his resignation? China links explained US government ‘bailout’ of Intel: A lender of last resort comes in Recognising Intel’s importance to national security and technological independence, the US government made a historic intervention under the 2022 CHIPS and Science Act. The company reportedly received up to 10.9 billion dollars—7.9 billion for commercial fabrication facilities in states like Arizona, New Mexico, Ohio, and Oregon, and 3 billion for producing military-grade chips under the Secure Enclave programme. In August 2025, the Trump administration converted roughly 8.9 billion dollars of these grants into a 10 per cent equity stake in Intel, making the US government its largest shareholder. The deal included non-voting shares and a 5 per cent warrant, which would allow the government to expand its stake if Intel’s foundry unit loses majority control. Additionally, SoftBank invested 2 billion dollars in support of Intel’s turnaround efforts. Critics have compared the government's move to the 2008 bailout of the US auto industry, warning that financial aid alone may not resolve Intel’s deeper challenges, such as its technological lag behind TSMC and Nvidia. Can Intel catch up in the near future? While a turnaround is not impossible, recent failures suggest caution. Intel has yet to attract major foundry clients like Apple or Nvidia. Its much-publicised Intel 18A process, set to launch in 2025, is already facing scepticism over whether it can match the performance and efficiency of competitors’ offerings. A breakthrough innovation could still restore Intel’s standing, but as of now, its “rock star” era is clearly over. The company faces an uncertain future as it struggles to remain competitive in a global market increasingly dominated by faster-moving rivals—including those from China.

<p>A series of strategic mistakes and the rise of China in chip-making contributed to the collapse of the legendary semiconductor firm, which at one point had its hardware inside practically every computer. What went wrong? Here is what you should know</p>

Intel's fall: Firm that once called its engineers 'rock stars' is now on US govt crutches amid China chip wars. How did it get here?

<p>Intel has secured a $2 billion equity investment from Japan’s SoftBank Group, marking a major vote of confidence in the US chipmaker’s turnaround efforts. The deal, announced on Monday, comes as Intel struggles to regain its footing in the artificial intelligence (AI) chip race after years of missteps. The fresh capital injection will make SoftBank one of Intel’s top-10 shareholders, according to Reuters. The Japanese investment giant is paying $23 per share, slightly below Intel’s Monday closing price of $23.66. Based on Intel’s market capitalisation, the purchase translates into a stake of just under 2 per cent, making SoftBank the company’s sixth-largest investor.</p><p>&nbsp;</p><p>The deal adds to SoftBank’s sweeping AI ambitions, which include its $500 billion Stargate data centre project in the US. Despite the size of the investment, SoftBank will not take a board seat at Intel nor commit to buying its chips, Reuters reported.</p><h2><strong>Market reaction and White House backdrop</strong></h2><p>News of the deal pushed Intel shares up 5.6 per cent in after-hours trading, while SoftBank’s stock dropped more than 5 per cent on Tuesday.</p><p>&nbsp;</p><p>The announcement also comes days after reports that the US government may itself buy a stake in Intel. Bloomberg reported that Washington is considering taking up to a 10 per cent holding after a recent meeting between Intel’s new CEO Lip-Bu Tan and President Donald Trump. Trump has been critical of Tan’s past ties to Chinese firms, though sources told Reuters that SoftBank’s investment is not connected to the White House’s discussions.</p><p>&nbsp;</p><p>SoftBank CEO Masayoshi Son described the deal as a strategic bet on America’s semiconductor base, saying the group believes “advanced semiconductor manufacturing and supply will further expand in the United States, with Intel playing a critical role,” as quoted by Reuters.</p><h2><strong>Intel’s mounting challenges</strong></h2><p>For Intel, the funding is a lifeline. The company posted a $18.8 billion loss in 2024, its first annual loss since 1986. Rival AMD has steadily chipped away at its dominance in the personal computer and server markets, while Taiwan’s TSMC continues to lead in contract chip manufacturing.</p><p>&nbsp;</p><p>Intel’s costly plan to build a foundry business that could rival TSMC has struggled to take off. According to Reuters, the company is now considering a significant shift in its contract chip strategy in a bid to attract big customers, though such a move could be expensive.</p><p>&nbsp;</p><p>Industry analysts say Intel’s position as both a designer and manufacturer of chips could still prove decisive. “Intel’s dual role as designer and manufacturer uniquely positions it as potentially the best platform in the US to compete with TSMC,” Charu Chanana, chief investment strategist at Saxo, told Reuters.</p><h2><strong>SoftBank’s AI spree</strong></h2><p>SoftBank’s investment in Intel is part of a larger wave of high-profile bets this year. The Japanese firm has already committed $30 billion to OpenAI and is backing the Stargate project, which will see massive data centres built across the US. As part of that project, Taiwan’s Foxconn said on Monday it would manufacture data centre equipment with SoftBank at its Ohio facility, formerly an electric vehicle plant.</p><p>&nbsp;</p><p>Intel’s partnership with SoftBank offers short-term financial relief, but its long-term revival will hinge on whether it can finally compete in the AI chip market — a race where Nvidia and TSMC are already far ahead.</p><p>&nbsp;</p><p>(With inputs from the agencies)&nbsp;</p>

The deal, priced at $23 per share, gives SoftBank just under a 2% stake and marks a rare vote of confidence in Intel’s turnaround amid mounting AI chip competition. 

Intel has secured a $2 billion equity investment from Japan’s SoftBank Group, marking a major vote of confidence in the US chipmaker’s turnaround efforts. The deal, announced on Monday, comes as Intel struggles to regain its footing in the artificial intelligence (AI) chip race after years of missteps. The fresh capital injection will make SoftBank one of Intel’s top-10 shareholders, according to Reuters. The Japanese investment giant is paying $23 per share, slightly below Intel’s Monday closing price of $23.66. Based on Intel’s market capitalisation, the purchase translates into a stake of just under 2 per cent, making SoftBank the company’s sixth-largest investor. The deal adds to SoftBank’s sweeping AI ambitions, which include its $500 billion Stargate data centre project in the US. Despite the size of the investment, SoftBank will not take a board seat at Intel nor commit to buying its chips, Reuters reported. Market reaction and White House backdrop News of the deal pushed Intel shares up 5.6 per cent in after-hours trading, while SoftBank’s stock dropped more than 5 per cent on Tuesday. The announcement also comes days after reports that the US government may itself buy a stake in Intel. Bloomberg reported that Washington is considering taking up to a 10 per cent holding after a recent meeting between Intel’s new CEO Lip-Bu Tan and President Donald Trump. Trump has been critical of Tan’s past ties to Chinese firms, though sources told Reuters that SoftBank’s investment is not connected to the White House’s discussions. SoftBank CEO Masayoshi Son described the deal as a strategic bet on America’s semiconductor base, saying the group believes “advanced semiconductor manufacturing and supply will further expand in the United States, with Intel playing a critical role,” as quoted by Reuters. Intel’s mounting challenges For Intel, the funding is a lifeline. The company posted a $18.8 billion loss in 2024, its first annual loss since 1986. Rival AMD has steadily chipped away at its dominance in the personal computer and server markets, while Taiwan’s TSMC continues to lead in contract chip manufacturing. Intel’s costly plan to build a foundry business that could rival TSMC has struggled to take off. According to Reuters, the company is now considering a significant shift in its contract chip strategy in a bid to attract big customers, though such a move could be expensive. Industry analysts say Intel’s position as both a designer and manufacturer of chips could still prove decisive. “Intel’s dual role as designer and manufacturer uniquely positions it as potentially the best platform in the US to compete with TSMC,” Charu Chanana, chief investment strategist at Saxo, told Reuters. SoftBank’s AI spree SoftBank’s investment in Intel is part of a larger wave of high-profile bets this year. The Japanese firm has already committed $30 billion to OpenAI and is backing the Stargate project, which will see massive data centres built across the US. As part of that project, Taiwan’s Foxconn said on Monday it would manufacture data centre equipment with SoftBank at its Ohio facility, formerly an electric vehicle plant. Intel’s partnership with SoftBank offers short-term financial relief, but its long-term revival will hinge on whether it can finally compete in the AI chip market — a race where Nvidia and TSMC are already far ahead. (With inputs from the agencies)

<p>Intel has landed a $2 billion equity investment from Japan’s SoftBank Group, making the Japanese giant one of its top-10 shareholders.</p>

Intel gets $2 billion SoftBank lifeline as chipmaker struggles for AI relevance

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Intel's fall: Firm that once called its engineers 'rock stars' is now on US govt crutches amid China chip wars. How did it get here?

Intel gets $2 billion SoftBank lifeline as chipmaker struggles for AI relevance