Former Intel CEO Proposes $40 Billion Plan to Revitalize U.S. Chip Manufacturing and Secure Technological Leadership

Craig Barrett, former CEO of Intel, has put forward a comprehensive strategy to revitalize the semiconductor giant and secure the future of advanced chip manufacturing in the United States [1]. In an exclusive interview, Barrett stressed that Intel, as the only U.S. firm capable of producing leading-edge logic chips, is vital to national technological security and industrial independence. However, without a significant influx of capital—approximately $40 billion—the company will struggle to keep pace with global leaders like TSMC and Samsung [1].

Barrett’s plan hinges on a collaborative model involving both government and private sector stakeholders. He argues that U.S. technology leaders, including firms such as Nvidia, Apple, and Google, should recognize the strategic and economic necessity of having a domestic alternative to Asian manufacturers. This includes not only pricing and supply chain resilience but also national security considerations [1]. He suggested that if eight major U.S. tech firms each contributed $5 billion, Intel would have the capital needed to rebuild its competitive edge.

A key obstacle, according to Barrett, is the current leadership’s reluctance to invest in next-generation technologies such as 14A until customer commitments are secured. He criticized this approach as unrealistic, arguing that leadership in semiconductor manufacturing requires technological innovation before customer agreements are finalized. Barrett also emphasized that Intel has the foundational technology—such as high NA EUV lithography and backside power delivery—to compete at the leading edge, provided it receives the necessary investment [1].

Another controversial aspect of Barrett’s proposal is the idea of imposing a significant tariff on high-end semiconductor imports, similar to the U.S. support for domestic steel and aluminum. He sees this as a catalytic measure that could incentivize companies to invest in domestic manufacturing. Meanwhile, he dismissed calls to break up Intel as a solution, calling it an unnecessary complication that would delay critical actions such as securing funding and customer commitments [1].

Barrett’s comments highlight the urgency of the situation. With global supply chains shifting and geopolitical tensions rising, the U.S. has a narrow window to maintain its leadership in semiconductor manufacturing. His plan not only addresses Intel’s immediate financial and strategic needs but also aligns with broader policy goals outlined in the CHIPS Act [1]. The success of this strategy, however, will depend on coordination among the federal government, corporate customers, and Intel’s board, with a focus on swift and decisive action rather than continued debate.

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[1] Exclusive: Former Intel CEO Craig Barrett outlines plan to save Intel and America’s advanced chip manufacturing (https://fortune.com/2025/08/10/exclusive-former-intel-ceo-craig-barrett-outlines-plan-to-save-intel-and-americas-advanced-chip-manufacturing/)