Intel’s Foundry Struggles Amid Political and Financial Pressures
Intel faces mounting challenges as political scrutiny and financial pressures intensify. The company entered 2026 without securing a major external customer for its foundry business, which remains unprofitable. MorningStar analyst Brian Colello noted cautious Optimism about Intel's future relevance in U.S. chip manufacturing but highlighted the absence of concrete progress.
Once a pioneer in microprocessors and x86 architecture, Intel's insistence on in-house manufacturing has become a liability. The industry's shift to fabless models left Intel trailing TSMC, with declining market share in CPUs further eroding its manufacturing scale.
The tenure of former CEO Pat Gelsinger, marked by heavy spending on foundry expansion, failed to reassure investors. His replacement, Lip-Bu Tan, has maintained the strategy while emphasizing cost discipline and industry networking—yet the path to redemption remains uncertain.
