Qualcomm CEO: Intel Chip Manufacturing Not An Option Until It Improves

Intel is looking to leverage its chip manufacturing foundry business as a core part of its plan to right the ship, as the company attempts to secure orders from third parties. Though comments from Qualcomm CEO Cristiano Amon won't help matters. Amon claimed in a recent interview that Intel still has work to do when it comes to optimizing its manufacturing processes if it’s going to convince chip design firms such as Qualcomm to do business with them.

During an interview with Bloomberg Tech, Amon was asked about the possibility of his company working with Intel on future chips. Amon didn’t mince words, saying that “Intel is not an option today” because it’s not able to make the types of efficient designs that it needs for its lineup of processors. Most of Qualcomm's chips are destined for use in mobile devices or low power devices that end up as part of infotainment systems in vehicles, with an eye toward providing more advanced platforms such as Snapdragon Ride Pilot.


However, he did add that Qualcomm would “like Intel to be an option.” Qualcomm currently relies on Samsung and TSMC for production of its chips, so having a third option would be a big win for the company to diversify its supply chain and potentially lower production costs due to the increased competition. Being able to produce chips within the United States would also mean avoiding the specter of the ever-shifting tariff situation.

These comments will likely be a blow for Intel in the short term, as it won’t inspire any confidence in other companies contemplating use of Intel's foundries. However, Intel recently received an investment from the US government, alongside significant financial backing from Japanese firm Softbank. Among the industry there are many that believe Intel can turn things around, and the funds will go a long way to help the company accomplish just that.