Intel's new CEO considering shift to 14A manufacturing, potentially costing billions

From Yahoo Finance: 2025-07-01 21:29:00

Intel’s new CEO is considering major changes to contract manufacturing to attract big customers, potentially costing billions. Shares fell 5%. The company may write off billions to halt the 18A process, focusing on 14A instead. Intel aims to compete with TSMC for clients like Apple and Nvidia.

To revive the ailing chipmaker, Intel’s CEO plans to cut costs and target new technologies. Persuading outside clients to use Intel’s factories is crucial. The company’s focus on 14A aims to compete with TSMC for big clients. The board will decide on the future of 18A in upcoming meetings.

Last year, Intel posted its first unprofitable year since 1986, with a net loss of $18.8 billion. The CEO faces high risks and costs to regain the company’s competitive edge. Intel is targeting production for 18A this year, while the success of 14A remains uncertain.

Intel may shift focus from 18A to 14A for contract chipmaking, tailoring it to key clients’ needs. The company will continue producing chips via 18A based on existing plans and commitments to Amazon and Microsoft. CEO Lip-Bu Tan’s strategy for Intel is still evolving, with a focus on talent and streamlining management.

The 18A process aimed to match or exceed TSMC’s capabilities but is now comparable to N3 technology. Intel’s future may hinge on the success of 14A, as it aims to compete against TSMC. Tan’s industry contacts and experience drive his decisions on Intel’s manufacturing strategy.

Read more: Exclusive-Intel’s new CEO explores big shift in chip manufacturing business