Intel Shifts Focus to 14A Production After 18A Setbacks

Key Takeaways

1. Intel reported a significant loss of $18.8 billion for fiscal year 2024, leading to CEO Pat Gelsinger’s departure.
2. Delays in the Intel 18A manufacturing process hinder Intel’s competitiveness against TSMC, which is advancing its N2 production.
3. Intel plans to limit the use of Intel 18A for its own chip production, with minimal output for major clients like Amazon and Microsoft.
4. Upcoming “Panther Lake” laptop processors are expected to use the Intel 18A process starting in late 2025.
5. Intel is pivoting towards Intel 14A manufacturing to compete with TSMC and Samsung, aiming to attract clients like Apple and Nvidia, with strategy discussions planned for July and fall.

The current state of Intel is deteriorating significantly. The company has revealed a staggering loss of $18.8 billion for the fiscal year 2024, leading to the departure of CEO Pat Gelsinger. As a result, the delays in the Intel 18A manufacturing process are making it outdated and unable to compete effectively. A report from Reuters indicates that while Intel is struggling, TSMC’s N2 production is progressing as planned.

Shift in Production Strategy

Intel’s recent plans involve limiting the use of Intel 18A and Intel 18A-P exclusively for its own chip production, rather than attracting new clients. There will be a “small quantity” of chips produced for major clients like Amazon and Microsoft using the Intel 18A process. The upcoming “Panther Lake” laptop processors are anticipated to utilize the 18A process starting in the latter half of 2025. As reported by Reuters, the Intel 18A process is probably similar to TSMC’s N3, although the N3 technology has been in mass production since 2022.

Future Directions

In an effort to enhance its competitive stance against TSMC and Samsung Foundry, Intel is reportedly shifting its focus to Intel 14A, the next-generation manufacturing process that supposedly provides benefits over TSMC’s offerings. The intention is to attract major customers such as Apple and Nvidia, encouraging them to transition from TSMC. Nevertheless, Intel has yet to finalize its strategy regarding both Intel 18A and Intel 14A. Discussions about potential strategies will take place during a supervisory board meeting in July, with final decisions anticipated by a fall meeting at the latest.

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