Intel CEO Lip-Bu Tan Eyes Major Foundry Shake-Up, May Drop 18A Chip Tech

Intel’s new CEO Lip-Bu Tan is evaluating a major strategic shift in the company's chip manufacturing business to regain competitiveness and attract large clients like Apple and Nvidia. The proposed plan involves scaling back or halting marketing of the company’s 18A chipmaking process, a flagship technology heavily championed by former CEO Pat Gelsinger but now seen as failing to attract enough external customers.

Instead, Tan may focus resources on the 14A process, where Intel believes it holds a performance edge over Taiwan-based TSMC, its primary rival in the global foundry business. The 14A platform is still under development but is seen as more commercially viable for luring high-profile customers and reversing the company’s financial slump.

The 18A and 18A-P technologies cost Intel billions to develop, and a potential write-off could result in losses running into hundreds of millions—or even billions—of dollars, according to industry analysts. While Intel remains its own primary customer for 18A, especially for the upcoming “Panther Lake” laptop chips due later in 2025, Tan is reportedly pushing to re-evaluate external marketing of the node due to delays and low adoption.

Intel's board is expected to review options in its upcoming July meeting, though a final decision may be deferred to autumn due to the financial implications.

This comes as Intel struggles to regain profitability—2024 marked its first loss year since 1986, with a net loss of $18.8 billion. A renewed focus on 14A, improving customer trust, and restoring financial stability are at the core of Tan's turnaround strategy.