Intel eyes custom ASIC business to rival AI giants
Intel plans to expand into custom chip design services as part of a strategic shift outlined by Chief Executive Lip-Bu Tan at the company’s third-quarter earnings call. The semiconductor manufacturer created a Central Engineering Group led by Srini Iyengar to consolidate technical talent and develop application-specific integrated circuits for external clients.
The initiative positions Intel to offer combined design and manufacturing capabilities that competitors like Broadcom, Marvell, and Alchip cannot match through their business models. Tan brings expertise from his tenure at Cadence Systems, where he focused on intellectual property licensing and custom silicon partnerships before joining Intel in July.
The company aims to leverage its x86 architecture and foundry operations to serve artificial intelligence hardware customers seeking tailored solutions. Intel faces competition from Nvidia and AMD in the accelerator market, with its next major product line scheduled for release in 2027.
The consolidated engineering structure reduces coordination costs between design teams and manufacturing facilities. Success in the custom chip sector could establish Intel as a complete systems foundry handling all supply chain stages for technology companies pursuing specialized processors.
