In the technology industry, the rise and fall of companies often happen closer together than elsewhere, and the drama sets new standards. Since the dethronement of the seemingly invincible Finnish mobile phone king Nokia by Apple's iPhone, the term „Nokia moment“ has been used to describe strategic corporate crises of existential dimensions. Volkswagen was once thought to be facing such a moment, and Intel might soon be in the same position. The former glory of this industry veteran has long since faded. The company was caught off guard by innovations in the smartphone market, and is now even facing competition in the PC segment from rivals, including Apple.

The management has already put the brakes on its costly efforts in research and development, and has sought salvation in contract manufacturing. So far, without tangible results: the demand for the company's products is weak, improvement is not in sight, and the results are deeply negative. Consequently, CEO Pat Gelsinger, who is at risk of losing his position, is now grappling with fundamental challenges.

Meanwhile, a major downsizing and drastic cost-cutting measures in investments are unlikely to pull the company out of its crisis. The company has also fallen behind in the AI revolution, where chip technology plays a crucial role. The rise and dominance of Nvidia challenge all established semiconductor companies, but Intel, due to years of self-inflicted weaknesses, has little chance to respond effectively.

This also threatens those involved in the billion-dollar subsidy campaigns, through which Western countries – especially Germany – are trying to strengthen a key industry in the technology sector, and make the beleaguered business location more resilient. Innovative and growth-oriented companies typically do not rely on public subsidies and may be cautious about accepting them due to the conditions and government interference involved. The German government has pledged 10 billion euros to Intel for its planned factory in Magdeburg, a third of the investment sum. Given the dire state of the company, Berlin should be on high alert.