Intel is in deep crisis — and it’s not just the company that’s concerned. The US government, which views Intel as a cornerstone of national technology and security, is reportedly exploring extraordinary intervention measures, including a potential merger of Intel’s chip design business with AMD or Marvell, according to multiple insiders.
🇺🇸 Government’s Unusual Backup Plans #
US lawmakers and Commerce Department officials, including Senator Mark Warner — a major advocate of the CHIPS and Science Act — have met privately to discuss Intel’s future.
These talks are separate from the $8.5 billion in subsidies Intel is set to receive under the CHIPS program.
One radical proposal on the table: merging Intel’s CPU design division with another US chip designer such as AMD or Marvell, under government oversight.
However, even if Intel were open to such an idea, AMD — currently thriving with its Zen 5 architecture — may not be interested.
Moreover, antitrust scrutiny from the EU and China would almost certainly block any merger.
💬 Qualcomm, Samsung, and Apple Rumors #
Recent speculation suggested that Qualcomm might acquire Intel or its design unit, but both companies have denied such talks.
Reports indicated Qualcomm could revisit the idea after the US elections, though no concrete plans exist.
Even Samsung and Apple have been named in speculative reports — ideas widely viewed as implausible.
Another option being discussed involves spinning off Intel’s foundry division, but that’s seen as highly unlikely.
Intel’s manufacturing arm is one of its most valuable assets and essential to its long-term strategy.
Even if spun off, it’s unclear who would have the capital or strategic interest to take over such a massive operation.
At this stage, officials describe these merger or spinoff ideas as contingency planning — “backup plans” should Intel’s recovery falter.
🏭 Why Intel Still Matters #
Despite recent losses, Intel expects financial improvement by Q4 2024, emphasizing its ongoing restructuring efforts.
Still, Washington’s concern underscores Intel’s unique strategic role: it is the only US company capable of both designing and manufacturing cutting-edge semiconductors.
“Intel is the only US company capable of simultaneously designing and manufacturing advanced chips,”
an Intel spokesperson stated.
“It plays a critical role in maintaining America’s global semiconductor competitiveness.”
If Intel were to fail, US chip production would become heavily dependent on TSMC and Samsung, both based abroad — a national security risk the US is eager to avoid.
While TSMC and Samsung have established US fabs, their current capacities are too small to replace Intel’s manufacturing scale.
Intel also remains one of America’s largest exporters, generating over $40 billion in export revenue in 2023.
✂️ Layoffs and R&D Restructuring #
Intel is implementing massive global layoffs to streamline operations, targeting tens of thousands of positions.
In Israel, where Intel employs about 11,700 people, hundreds of R&D staff are being let go — particularly in its Haifa research center, historically responsible for legendary CPU designs such as Banias, Yonah/Merom, and Nehalem.
- Haifa: Focuses on CPU design, AI hardware, and software — birthplace of Intel’s most successful processor lines.
- Petah Tikva: Works on communications and AI solutions.
- Jerusalem: Specializes in software and cybersecurity.
- Yakum: Hosts smaller R&D operations.
- Intel also runs two major fabs in Israel.
Interestingly, while Intel downsizes, NVIDIA is expanding aggressively in Israel — reportedly hiring dozens of former Intel engineers this year alone, growing its local headcount to 4,000 employees.
⚖️ A Turning Point for US Chip Strategy #
The discussions around Intel’s potential merger or restructuring signal deep concern within Washington about preserving America’s semiconductor self-sufficiency.
Even though AMD and NVIDIA are thriving, neither designs and manufactures chips domestically.
Intel’s dual design–fabrication capability remains unmatched — and its decline would leave the US reliant on foreign foundries.
While Intel faces its most serious crisis in decades, its recovery remains vital — not just for investors, but for the future of US high technology itself.
And as history shows — AMD once nearly collapsed during the Bulldozer era — a comeback is always possible.
