Gelsinger: Intel wants to take back Apple’s business by surpassing it

In short: Intel, which is run by Pat Gelsinger, is now ready to admit that it failed to deliver x86 chips to Apple’s Silicon level, so the latter company is now in the process of converting its entire line of Mac products to custom Arm-based chipsets that are as powerful as and some desktop processors, but require much less power to operate.

Intel CEO Pat Gelsinger is expected to transform the company into a leader in manufacturing and packaging technology by 2025. To that end, Intel began expanding its chip manufacturing capacity and created a new division in the form of Intel Foundry Services, which will take on contract manufacturing for companies such as Qualcomm and Amazon, as well as government customers such as the US Department of Defense.

At the same time, the company is struggling to make its processors more attractive to both consumers and enterprise customers, losing some market share, as well as giving way to AMD and a number of startups building processors based on Arm.

Gelsinger recently announced that Intel is back with a vengeance and that AMD’s leadership in x86 processors will soon come to an end. Team Blue also has big plans for the GPU market, and the new CEO is convinced there is an unmet need for alternative GPUs beyond those made by Nvidia and AMD.

The last time Intel tried to build a graphics card, things didn’t go so well, but at least on paper, the Xe-HPG architecture (also known as Alchemist) looks impressive. All he needs is to enter the market sooner rather than later as the window of opportunity is shrinking. In addition, there is a production volume issue as Intel decided to outsource Alchemist TSMC’s GPU production.

Beyond these promises, Intel is finally ready to admit that losing Apple as a customer is something that the company wanted to prevent, but couldn’t, because the latter “decided they could make a better chip themselves than us.” Just as Apple Introduces the New Arm-based Silicon-Based MacBook Pro Line, Gelsinger is talking Intel hopes to be able to mend relations with the Cupertino giant. However, he acknowledges that it will take a lot of effort to create the best chip, and that it will be a gradual, multi-year process. For now, Apple is slowly parting ways with Intel after using its processors across its entire Mac product line for nearly two decades.

Some of you may recall a poorly received ad campaign when Intel hired former PC versus Mac ad actor Justin Long to criticize Apple’s lack of variety in the MacBook lineup or attempts to discredit the idea of ​​what the Cupertino company managed to come up with with a chipset. as powerful as a desktop processor while staying cooler and battery life. Earlier this month, he even held a so-called “social experiment“Where he sought to prove that Apple fans somehow don’t know what a PC can do for them versus a Mac, while completely ignoring the software side of things.

Gelsinger’s strategy for restoring Apple’s trust in its capabilities will be to outperform the latter and demonstrate that developers and consumers are still drawn to its x86 offerings. During interview At Axios, he noted that Intel is already pursuing this idea through things like a partnership with Microsoft that is working to bring Android apps to Windows 11.

Overall, it looks like the Pat Gelsinger-based Intel is ready to take a close look in the mirror and find what brought it to its current state. Whether the company can use this to change its culture and reinvent itself, time will tell.

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