Intel comes under pressure to win foundry customers

Core Insights - Tesla CEO Elon Musk is considering a partnership with Intel, which could significantly impact the AI race and chip manufacturing landscape [1][2] - Intel is under pressure to secure customers for its fabrication business, and a partnership with Tesla would be a major win for the company [2][3] - The success of Intel's turnaround strategy, initiated nearly five years ago, is contingent on its ability to attract customers and demonstrate its manufacturing capabilities [3][4] Company Developments - Intel's new process, known as 14A, aims to compete with TSMC at the leading edge of chip manufacturing [4] - The return of Pat Gelsinger in March 2021 marked a pivotal moment for Intel, but investor confidence remains shaky regarding the execution of its turnaround plan [3][4] - The stakes are high for Intel as chip manufacturing is critical to the broader AI race, and the company needs to prove its capabilities to regain its former status [4][5] Industry Context - The majority of advanced chip manufacturing capacity is currently located in Taiwan and South Korea, raising concerns about geopolitical vulnerabilities [5] - The potential establishment of chip manufacturing in the U.S. is seen as a strategic move to reduce reliance on Taiwan Semiconductor Manufacturing Company (TSMC) [5] - Advanced chip manufacturing is complex, requiring not only infrastructure but also significant engineering expertise and precision [6]