Being key players in the PC market, Intel and Microsoft have always worked closely as one developed PC hardware, and the other delivered PC software. Thus, we saw the long-running dominance of 'Wintel' PC systems. Despite this success, both Intel and Microsoft missed the smartphone revolution in the late 2000s – early 2010s. But while Microsoft has managed to recover, Intel is struggling. Bill Gates, a co-founder of Microsoft, admitted in an interview with the Associated Press that Intel had lost its way, and it would be tough to resurrect.
Gates is particularly shocked that Intel, once known for being at the forefront of innovation, has fallen behind in both chip design and manufacturing. Competitors like Nvidia and Qualcomm lead in AI and smartphone processors, whereas TSMC is ahead in terms of process technologies. These issues, combined with the high costs of modern semiconductor development and production, put Intel in a difficult position. Now, with the recent ousting of CEO Pat Gelsinger in December, concerns about the company's ability to survive have intensified.
