When Pat Gelsinger returned to Intel three years ago as CEO, his goal was to revive the once-leading American tech company. Soon after, he made a strategic misstep with Taiwan’s TSMC, a major semiconductor manufacturer. TSMC had been producing chips for Intel at a substantial discount. However, Gelsinger’s comments about Taiwan’s unstable political situation with China offended TSMC, leading them to revoke the discount, which forced Intel to pay full price and cut into profits.
 
Gelsinger was determined to reestablish Intel’s manufacturing dominance. Early in his tenure, he announced plans for Intel to build a global foundry, with a $20 billion investment in two Arizona factories and a commitment to develop five advanced manufacturing processes over four years. To secure support, Gelsinger advocated for government subsidies, eventually standing alongside President Biden in 2022 to announce another $20 billion investment in Ohio.
 
However, Intel’s profits began to drop as demand for personal computers declined post-COVID, and competition grew from companies like AMD, Amazon, and Google, which designed their own chips. Gelsinger tried to rally Intel’s workforce, sharing “five reasons to believe” in Intel’s future, and pursued deals like one to build chips for Alphabet’s Waymo taxis. However, after Intel’s outlook dimmed in 2022, the Waymo deal was canceled, and Alphabet allegedly threatened legal action before Intel paid a settlement fee.
 
As Intel faced these challenges, the AI chip market took off, spurred by the launch of OpenAI’s ChatGPT, powered by Nvidia’s GPUs. Nvidia’s stock surged, while Intel’s stock fluctuated. Gelsinger promoted Intel’s Gaudi chip as an alternative to Nvidia’s GPUs, setting a $1 billion sales goal for AI chips, though internal forecasts were much lower. Intel later revised this figure, but Gelsinger continued to express optimism about Intel’s AI prospects.
 
Despite setbacks, Gelsinger stayed focused on manufacturing expansion, announcing over $60 billion in new factory investments, although some of these plans were eventually paused. Intel’s new 18A manufacturing process, set to compete with TSMC, faced hurdles, with initial tests showing low production yields for external customers. Major clients, including Apple and Qualcomm, declined to use 18A due to technical issues. Despite the delays, Intel maintains that it will regain leadership in chip manufacturing by 2025, with Gelsinger expressing confidence in the company’s turnaround. 
 
Three years in, Gelsinger remains confident in his strategy, stating, “This one's going to happen, baby.”