Intel Considers Abandoning 18A Node for 14A Chipmaking Process

Intel’s CEO Lip-Bu Tan is looking at a big change to how the company makes chips for others, Reuters reports citing people who know about it. The new plan might mean Intel stops offering its 18A process technology to other companies. This is different from the strategy of the former CEO, Pat Gelsinger, who had invested heavily in the 18A manufacturing process. Since assuming leadership in March, Tan has been working to reduce costs and find new approaches to revive the struggling chipmaker. By June, he began expressing concerns that the 18A process was failing to attract new customers. Abandoning external sales of 18A technology and focusing on its 14A process would require Intel to take substantial write-offs on the billions invested in its development. Industry analysts suggest these charges could reach hundreds of millions or potentially billions of dollars.

Intel plans to show the board these options later this month. However, a final decision is not expected until this autumn given the complexity and financial stakes involved. Even if they change plans, Intel will still keep its promises about 18A process including producing small amounts of chips for Amazon and Microsoft, and making its own “Panther Lake” laptop processors scheduled for late 2025.

Intel posted an $18.8 billion net loss in 2024, marking its first unprofitable year since 1986. Tan’s alternative strategy centers on concentrating resources on 14A technology, a next-generation manufacturing process where Intel believes it can compete more effectively against Taiwan Semiconductor Manufacturing Company (TSMC). This approach aims to attract major clients like Apple and NVIDIA, who currently use TSMC for chip production. Intel declined to comment on what it termed market speculation, stating that leadership remains “committed to strengthening our roadmap, building trust with our customers, and improving our financial position.”