Intel considering exiting 18A chip manufacturing technology due to financial struggles

2025-07-02 06:31:00

Intel Corp. (NASDAQ:INTC) is reportedly considering exiting external marketing of its 18A chip manufacturing technology under new CEO Lip-Bu Tan. This move follows an $18.8 billion annual loss in 2024 due to foundry struggles and technology delays.

CEO Tan inherited a challenging situation and is now reevaluating Intel’s 18A node, shifting focus to the more competitive 14A process. While Intel will continue using 18A internally, abandoning it externally could lead to a multibillion-dollar write-down.

The strategic shift aims to target top-tier clients like Apple and NVIDIA, currently reliant on TSMC. Intel’s board will review Tan’s proposal soon, with a final decision expected in the fall.

Investors are eager to see how this potential strategy shift impacts Intel’s future outlook, capex plans, and client relationships. Monitoring key metrics like revenue per share and R&D investment trends will be crucial as Intel adjusts its long-term roadmap.