Intel Announces Shifts Focus from Intel 20A to 18A!

Intel's CFO, David Zinsner, announced at the Citi Global TMT Conference on September 4th that the company will bypass the Intel 20A node, reallocating engineering resources to accelerate development on the Intel 18A process. This strategic move aims to reduce capital expenditures, with Intel 18A slated for release in 2025.

Initially, the Arrow Lake processors were planned for production using the Intel 20A process node. However, Intel has opted to partner with an external foundry, Taiwan Semiconductor Manufacturing Company (TSMC), for core component production. Despite this, Intel will retain control over the packaging of the chips.

By skipping the Intel 20A node and reallocating resources, Intel is expected to save $500 million. The company also shared that the Intel 18A process is progressing well, with high yield rates in their fabrication plants. Products based on Intel 18A are already operational, successfully booting up operating systems. The defect density of Intel 18A has reached D0 levels, with values below 0.40.

In July, Intel released the 1.0 version of its Process Design Kit (PDK) for Intel 18A, receiving positive feedback from its ecosystem partners. Intel has successfully integrated advanced technologies such as the RibbonFET transistor architecture and PowerVia power delivery system, initially developed for the Intel 20A node, into Intel 18A. These innovations will be leveraged for Intel’s own foundry services.

David also highlighted that Intel's advanced packaging business currently generates most of its revenue from external clients. The company is negotiating with 12 potential customers and expects to see wafer fabrication revenue from external clients in 2026, with "significant" revenue projected for 2027.

David did not comment on rumors regarding Intel's inability to deliver test wafers for potential customer Broadcom. The company is currently undergoing a restructuring plan that includes a 15% reduction in its global workforce and a cost-cutting goal of $10 billion by 2025. Additionally, reports suggest that Intel CEO Pat Gelsinger and other key executives are set to propose reductions in overseas capital expenditures, such as pausing the construction of the German plant, and exploring the sale of certain business segments, including manufacturing or FPGA operations, at an upcoming board meeting in mid-September.