Intel CEO Pledges “10x Return” with Bet on Advanced Packaging and New Materials

Intel CEO Lip-Bu Tan has set an ambitious target of achieving a “10x return over 5 to 10 years,” outlining a comprehensive technology roadmap centered on advanced packaging, glass substrates, and novel semiconductor materials .

In a recent interview with the tech podcast “No Priors,” Tan detailed his strategy to transform Intel by shifting investment focus toward EMIB advanced packaging technology, glass substrates, and new materials including gallium nitride (GaN), silicon carbide (SiC), indium phosphide (InP), and synthetic diamond wafers .

Addressing Physical Limits

As traditional process node scaling approaches its physical limits, Tan emphasized that Intel is systematically reconstructing its technology roadmap. The company has already mass-produced its 18A process and is advancing toward 14A production, with a visible path to 10nm and 7nm technologies. However, he acknowledged this path is becoming increasingly expensive and difficult .

“Semiconductor bottlenecks are where investment opportunities lie,” Tan stated. He identified optical interconnects, EDA tools, new materials, and physical AI as key areas of opportunity.

Strategic Partnerships

Tan revealed that Intel is collaborating with Elon Musk’s Terafab project, providing technology and process support for Musk’s initiative to build self-owned wafer fabs. He noted that weekly meetings with the Musk team are progressing smoothly .

On the foundry front, Tan emphasized that the business is fundamentally built on trust. “Customers must trust you before they hand over their wafers,” he said. He expects Intel Foundry’s true potential to become evident by 2030–2032, extending beyond traditional PC clients to edge computing, physical AI, and agentic AI markets .

Market Context

Tan noted that agentic AI and inference workloads are driving strong CPU demand recovery, with server CPU-to-GPU ratios shifting from 1:8 to as low as 1:4. Over the past 14 months, he said Intel has generated approximately 6x returns for shareholders .