Intel’s CEO Lip-Bu Tan Looks To Adopt a More Aggressive Approach With the Foundry Division; Reportedly Cancels Glass Substrate Project
Intel has recently taken some “bold decisions” with its foundry division, and particularly with future projects, as now, it is claimed that Team Blue would no longer pursue glass substrate.
Intel is Ready To Make Difficult Decisions With Its Business, Including Trimming Down Foundry Operations
Well, Team Blue’s new CEO, Lip-Bu Tan, has already declared that decisions will be made that involve a lot of restructuring and changes to the original roadmap. When you look at Intel’s Foundry division, it is clear that they haven’t met up to expectations when it comes to delivering processes to external partners, and the company’s 18A node has been a victim of delays and inconsistencies, which is why Intel is considering limiting activity around its semiconductor business. Now, in a report by ComputerBase, the firm will also use an external customer for glass substrates, abandoning its in-house efforts.
Intel has a massive lead in glass substrates since it has been developing the technology for several years, becoming ahead of the industry. However, it is claimed that Intel wants to reduce its operating costs and focus on core businesses, like CPU and manufacturing. Given that the market opens up opportunities for glass substrates, Intel would likely opt for external sourcing, indicating that the firm is determined to trim down its operations by cancelling projects that aren’t considered worthwhile.
One of the more critical updates that came earlier is Intel’s decision to reduce the influence of its 18A process in the market, by scrapping external sales of the process, to potentially lower the operating costs coming from the foundry division. This certainly doesn’t mark the end of Intel’s processes, as Team Blue is determined to integrate it with internal products, such as 18A for Panther Lake and Clearwater Forest. But, the prospects of 18A seeing adoption from the market look to drop down.
Interestingly, when Tan took over the office, rumors of the foundry business getting spun off started to swirl. Most importantly, Intel had already stated that they expect 18A’s usage to be more dominant with internal products. However, with 14A, Intel apparently believes that it can compete with TSMC, but the process would require a “massive” external volume for Team Blue to actually make the node available for external adoption.
It is safe to say that the future of Intel’s foundry business is looking uncertain for now, and we do await an update from Team Blue on the ongoing rumors, but Intel’s new CEO clearly stated in the past, that the firm needs to make difficult decisions.
