Intel has tapped Seok-Hee Lee, the former chief executive of SK Hynix, to run its foundry business as the company pushes to regain ground in the contract chipmaking market. Lee will join as Executive Vice President, reporting directly to Intel CEO Pat Gelsinger.
A veteran memory chip leader takes over
Lee spent decades in the semiconductor industry, most recently leading SK Hynix, the world’s second-largest memory chip maker. His appointment signals Intel’s intention to compete more aggressively with Taiwan Semiconductor Manufacturing Co. and Samsung Electronics in the foundry space.
“Seok-Hee’s deep semiconductor experience and track record of driving innovation and growth make him an ideal leader for our foundry business,” Gelsinger said in a statement. “His addition strengthens our leadership team as we execute on our IDM 2.0 strategy.”
Intel’s foundry business, called Intel Foundry Services, was launched in 2021 as part of a plan to manufacture chips for other companies. The unit has struggled to gain traction against established players, and the company has been working to build a customer base and improve its manufacturing capabilities.
Why the foundry push matters
The global chip shortage exposed how dependent the world is on a small number of manufacturers, mainly TSMC and Samsung. Intel hopes its foundry services can become a third major option, especially for U.S. and European customers looking to reduce supply chain risks.
But the competition is fierce. TSMC holds a commanding lead in advanced process nodes, and Samsung invests billions each year. Intel’s own manufacturing delays have hurt its credibility, though the company recently claimed it is back on track with its 18A and 20A processes.
Lee’s background in memory chips — where SK Hynix competes with Samsung and Micron — is a departure from the logic-chip focus of most foundry leaders. Intel may be betting that his experience scaling a massive manufacturing operation can translate to the foundry world.
What’s at stake for Intel
The foundry business is central to Gelsinger’s turnaround plan. Intel lost its decades-long lead in chip manufacturing to TSMC, and the company is now trying to catch up while also opening its factories to outside customers.
Success won’t come quickly. Building a foundry business requires winning trust, proving yields, and investing in capacity years before revenue flows. Intel has pledged to spend tens of billions on new fabs in the U.S. and Europe, partly supported by government subsidies.
Lee starts immediately. His first task will be to land new customers and convince existing ones that Intel can deliver on time and at competitive prices. The company has not disclosed any major foundry deals yet.
