Intel CEO Pat Gelsinger stated that the company currently meets only about 50% of customer demand for CPUs. He noted that supply remains tight due to high demand, and the company is unable to fulfill all orders from its clients.
Gelsinger emphasized the importance of integrating design, manufacturing, and advanced packaging. He highlighted that Intel is positioning its EMIB technology as a competitor to TSMC's CoWoS, noting that packaging substrates remain a significant supply chain challenge.
The CEO warned against over-reliance on a single foundry for AI chip production, citing supply chain risks if 95% of orders are concentrated at TSMC. Intel is actively seeking to capture a larger share of the global AI chip manufacturing market.
To address manufacturing challenges, Intel hired former SK Hynix CEO Lee Seok-hee in June 2026 to lead advanced packaging and backend technology. Additionally, Intel agreed in April 2026 to provide 14A process technology for the Terafab project.
Gelsinger stated that while foundry business is capital-intensive and complex, conditions have improved over the past 18 months. He expects CPU demand to remain high as AI inference agents increase the need for coordinated computing resources.
