Intel Looks to Change Up Its Foundry Game, Eyes 14A Process
Intel, with new CEO Lip-Bu Tan, is thinking about big changes to its manufacturing side. It seems they might stop selling the 18A process to others and focus more on the newer 14A. They hope this will help them win big clients and stand up to competitors like TSMC.
From 18A to 14A A Big Shift
They plan to cut back on pushing the 18A to new buyers. This is because they think 18A can't stack up to TSMC's N3 tech, which is selling well. Here are the key points:
- Better Chances: They believe that betting on 14A could put them ahead of TSMC.
- Going for Big Names: They want to pull in major buyers like Apple and Nvidia, who now work with TSMC.
- Money Matters: Moving from 18A might make Intel take a big money hit, maybe even billions.
What About Current Work
Just because they're pivoting doesn't mean 18A is out. Here's what they plan with 18A:
- For Intel's Use: They'll keep using 18A for their chips like Panther Lake and Clearwater Forest CPUs.
- Sticking to Deals: They'll still make 18A chips for clients like Amazon and Microsoft.
Cutting Costs and Staying Sharp
This shift fits into a larger plan under the new boss. They're also cutting costs by not making glass substrates themselves anymore, despite being ahead technologically. They'll just buy it from someone else to keep the focus on their main CPU and manufacturing work.
Intel's Foundry Future
The new CEO says tough choices are needed to fix things after a hard year, the first one in the red since 1986. The future of selling 18A to others is shaky, but they seem ready to make brave moves to get back on top and fix their money issues.
