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Intel bets on auto chips in foundry race with TSMC, Samsung

U.S. tech giant forecasts lower revenue, negative free cash flow in 2022

Intel of the U.S. is ramping up its foundry business as it aims to take on Asia's contract chipmaking giants. (Source photos by Reuters)

PALO ALTO, U.S./TAIPEI -- Intel announced Thursday that it is forming an automotive group under its foundry business to focus on car chips, as the company seeks to accelerate its chipmaking business to catch up with TSMC and Samsung. However, the race requires heavy investment and could leave the U.S. tech giant with negative cash flow this year. 

Intel CEO Pat Gelsinger said at the company’s annual investor meeting Thursday that demand for automotive silicon is expected to nearly double to $115 billion by 2030, which drove the company to create a chipmaking unit dedicated to carmakers.

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