Delays and cost risks prompt Intel to rethink its 18A chip strategy, signalling a shift under new CEO leadership.
Intel is evaluating whether to discontinue the external marketing of its 18A semiconductor manufacturing process, according to a Reuters report citing two individuals familiar with the matter.
This review is part of a wider strategic reassessment led by newly appointed Chief Executive Lip-Bu Tan, who aims to reposition the company’s foundry business to better compete with rivals such as Taiwan’s TSMC.
At the same time, Intel will continue to use the 18A process for its products, including its upcoming Panther Lake processors, which are due to enter production in late 2025. However, it may no longer promote 18A or its variant, 18A-P, to new foundry customers.
In addition, the company will fulfil existing contracts using 18A for selected clients, including Amazon and Microsoft, whose orders are already underway.
If Intel opts to stop marketing the 18A process to external customers, it would likely need to record a significant write-off.
According to one source cited by Reuters, the financial hit could range from several hundred million to multiple billions of dollars, an estimate supported by industry analysts.
This shift came amid prolonged delays in Intel’s 18A development, weakening its position as TSMC’s N2 process advances on schedule and gains momentum in the market.
In light of this, Tan is reportedly urging a pivot to the upcoming 14A node, which he believes not only holds more substantial technical merit but also improves Intel’s chances of securing strategic clients such as Apple and Nvidia.
Looking ahead, internal discussions with Intel’s board are expected to begin later this month. Nevertheless, a final decision may be deferred until the autumn due to the complexity and financial implications involved.
Meanwhile, Intel declined to comment on what it described as ‘rumour’ or ‘hypothetical scenarios.’ However, in a statement, the company said that Tan and the executive team remain committed to strengthening Intel’s product roadmap, restoring customer trust, and improving financial performance.
Since assuming leadership in March 2025, Tan has swiftly implemented structural changes. These include reorganising the leadership team, reducing costs, and streamlining layers of middle management.
As of now, despite Intel’s earlier claims positioning 18A alongside TSMC’s top-tier nodes, analysts assess it as more comparable to the company’s previous-generation N3 process, which ramped up in 2022.
