Imagine a tech legend calling for a massive bailout. Craig Barrett, former CEO of Intel, has done just that. He led Intel from 1998 to 2005, through a golden era. Now, he’s proposing a radical idea to save the struggling chip giant. A recent report from Tom’s Hardware on Monday brought his plan to light.
Barrett shared his thoughts in a Fortune article. He didn’t hold back, criticizing Lip-Bu Tan’s current leadership. Barrett believes Intel’s main problem isn’t its internal plans or setup. Instead, he points to a big lack of money. This shortage keeps Team Blue from making the most advanced chips. He says financial resources are the main bottleneck stopping the company from regaining its leading position.
So, what’s his big idea? He suggests eight of Intel’s biggest customers should chip in. Think Apple, Google, and NVIDIA, among others. Each would invest $5 billion. That adds up to a staggering $40 billion in fresh cash. Why would these tech giants open their wallets? Barrett says they’d get a huge perk. They’d be sure to get chips made right at home. Plus, they’d snag competitive prices. This would beat what they pay for chips from Asian rivals like TSMC and Samsung.
A United Front, Not a Divided One
Barrett has strong feelings about splitting Intel up. Some folks think breaking the company into manufacturing (Foundry) and design parts is smart. He calls this “the most foolish idea” for a technology company. He’d rather see the current board fired. Then, he wants Pat Gelsinger back as CEO. Gelsinger could finish the work he started to fix Intel.
Intel’s Deep Pockets, Emptying Out
Team Blue is certainly in a tough spot. They lost $18.8 billion in 2024 alone. Then another $2.9 billion in the second quarter of 2025. The government’s CHIPS Act brought in big investments. But even that isn’t enough for Intel to make a real tech jump. Barrett thinks without this massive cash injection, American leadership in chip manufacturing is at serious risk.
Barrett’s message is clear. Without this huge cash injection from key customers, and without more political help, like tariffs on imported chips, Intel might just lose its top spot in chip making. Meanwhile, its rivals are only getting stronger globally.