# Episode 62: Intel Foundry Financials and CHIPS Act Strategies

- Show: [The Circuit](https://hardwarepodcasts.com/podcast/the-circuit)
- Published: 2024-04-09
- Length: 30m
- Episode: 63
- Page: https://hardwarepodcasts.com/podcast/the-circuit/2024-04-09-episode-62-intel-foundry-financials-and-chips-act-strategies
- Listen: https://share.transistor.fm/s/7f649013

## Summary

Ben Bajarin and Jay Goldberg analyze Intel Foundry Services (IFS) financials, noting higher-than-expected wafer costs and negative gross margins, while arguing that Intel product group's return and 18A process competitiveness will drive future profitability. They discuss the CHIPS Act subsidies for TSMC and Intel, highlighting the strategic shift toward US-based leading-edge semiconductor production. The hosts conclude that CEO Pat Gelsinger has successfully positioned Intel to compete in the AI and data center markets, despite long-term financial hurdles and uncertainty around AI hardware demands.

## Chapters

- [0:06](https://hardwarepodcasts.com/podcast/the-circuit/2024-04-09-episode-62-intel-foundry-financials-and-chips-act-strategies#t=6) Introduction: Intel Foundry Financials and IFS Breakout
- [2:07](https://hardwarepodcasts.com/podcast/the-circuit/2024-04-09-episode-62-intel-foundry-financials-and-chips-act-strategies#t=127) IFS Financial Analysis: Margins, Wafer Costs, and Sandbagging
- [9:42](https://hardwarepodcasts.com/podcast/the-circuit/2024-04-09-episode-62-intel-foundry-financials-and-chips-act-strategies#t=582) Internal Cost Allocation and the IDM Model Transition
- [15:30](https://hardwarepodcasts.com/podcast/the-circuit/2024-04-09-episode-62-intel-foundry-financials-and-chips-act-strategies#t=930) Competing on Merit: 18A Process and Product Performance
- [19:27](https://hardwarepodcasts.com/podcast/the-circuit/2024-04-09-episode-62-intel-foundry-financials-and-chips-act-strategies#t=1167) CHIPS Act Subsidies: Intel, TSMC, and US Manufacturing
- [24:20](https://hardwarepodcasts.com/podcast/the-circuit/2024-04-09-episode-62-intel-foundry-financials-and-chips-act-strategies#t=1460) Intel Vision Event and Pat Gelsinger's Leadership
- [28:15](https://hardwarepodcasts.com/podcast/the-circuit/2024-04-09-episode-62-intel-foundry-financials-and-chips-act-strategies#t=1695) AI Market Uncertainty and Intel's Future Relevance

## Topics

- [Pricing, margins & unit economics](https://hardwarepodcasts.com/topic/pricing-and-unit-economics)
- [Policy, trade & tariffs](https://hardwarepodcasts.com/topic/policy-trade-and-tariffs)
- [Microcontrollers & dev platforms](https://hardwarepodcasts.com/topic/microcontrollers-and-platforms)
- [Leadership, teams & culture](https://hardwarepodcasts.com/topic/leadership-and-culture)
- [AI & machine learning](https://hardwarepodcasts.com/topic/ai-and-machine-learning)

## Most relevant to

large enterprises

## Mentioned

- Intel (company)
- Intel Foundry Services (company)
- TSMC (company)
- AMD (company)
- Nvidia (company)
- CHIPS Act (other)
- 18A (product)
- Pat Gelsinger (other)

## Related episodes from other shows

- [The CHIP Act’s Blind Spot | A Lifeline for Intel | I Just Saw a Face](https://hardwarepodcasts.com/podcast/ee-times-current/2020-07-31-the-chip-acts-blind-spot-a-lifeline-for-intel-i-just-saw-a-face) (EE Times Current)
- [Headline: Intel Throws a Curveball | The Book on Gallium Nitride](https://hardwarepodcasts.com/podcast/ee-times-current/2021-03-26-headline-intel-throws-a-curveball-the-book-on-gallium-nitride) (EE Times Current)
- [I’m the CHIPS bill / Stuck on Capitol Hill…](https://hardwarepodcasts.com/podcast/ee-times-current/2022-02-04-im-the-chips-bill-stuck-on-capitol-hill) (EE Times Current)
- [Lip-Bu Tan's Intel](https://hardwarepodcasts.com/podcast/oxide-and-friends/2025-03-21-lip-bu-tans-intel) (Oxide and Friends)
- [Bonkers Birthday Badinage](https://hardwarepodcasts.com/podcast/the-amp-hour/2012-06-18-bonkers-birthday-badinage) (The Amp Hour)

## Citing this page

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