Report claims Intel is sidelining 18A node in favour of 14A
Intel’s new CEO, Lip-Bu Tan, is reportedly exploring ceasing marketing its 18A process technology to external foundry customers. Instead, it would focus on the 14A process node.
This potential shift, first reported by Reuters, represents a departure from the previous strategy of focusing on 18A, which saw substantial investment poured into development and promotion. Since taking the helm in March, Tan has actively sought to streamline operations and revitalise the company’s financial performance. By June, he had apparently voiced concerns that the 18A process was struggling to attract the anticipated level of new external clients.
Industry analysts suggest these changes could amount to hundreds of millions in losses. Intel reported a net loss of $18.8 billion in 2024, marking its first unprofitable year since 1986, underscoring the urgency of Tan’s efforts to find a more efficient path forward.
Intel plans to present these strategic options to its board later this month. However, due to the complexity and financial implications involved, a final decision is unlikely to be reached until autumn. Regardless of any changes to its broader strategy, Intel has affirmed it will honour existing commitments for 18A production. This includes manufacturing limited quantities of chips for confirmed clients like Amazon and Microsoft and producing its own “Panther Lake” laptop CPUs, which are slated for late 2025. Beyond the standard 18A, Intel is also developing two enhanced versions: 18A-P, set for release in 2026, and 18A-PT, expected in 2028.
Intel believes the 14A process will enable it to compete more effectively against TSMC and potentially attract major clients such as Apple and Nvidia, who currently rely on the Taiwanese company for chip fabrication.
KitGuru says: If this proves true, it would mark another major shift in strategy since Gelsinger left.
