Intel May Start Foundry Clients on 14A Node

According to industry insiders, Intel's newly appointed CEO, Lip-Bu Tan, is reportedly planning a strategic overhaul of the company's foundry operations in an effort to attract major customers and revive its competitiveness in the semiconductor industry. According to two sources familiar with the matter, Intel is exploring the possibility of bypassing its much-publicized 18A process node for new foundry clients and shifting directly to its more advanced 14A technology.

This potential shift marks a significant change in Intel's strategy. If implemented, it could mean the company would stop offering certain chip manufacturing technologies—developed over years of internal R&D—to external clients altogether.

Since taking the helm in March, Tan has taken swift steps to cut costs and seek new directions for the struggling U.S. chipmaker. Sources indicate that in June, Tan expressed concerns that the 18A process—heavily backed by former CEO Pat Gelsinger with billions of dollars in investment—was losing its appeal to prospective customers.

If Intel decides to halt external sales of 18A and its variant 18A-P, the company would likely be forced to write down those assets, potentially resulting in losses ranging from hundreds of millions to several billion dollars, according to industry analysts.

Intel declined to comment on what it called "hypothetical scenarios or market speculation." The company emphasized that the 18A node has primarily been used internally and remains on track to ramp up production for its "Panther Lake" laptop processors by late 2025, which it touts as the most advanced processors ever designed and manufactured in the U.S.

Nevertheless, securing external foundry clients remains a vital goal for Intel's long-term strategy. While 18A production is scheduled to begin later this year, internal chips are expected to ship before any third-party orders are fulfilled.

In response to the challenge, Tan is reportedly refocusing the company's efforts on its next-generation 14A process node, which Intel believes could outperform rival offerings from TSMC. The company also confirmed it is customizing the 14A process based on key customer requirements to boost competitiveness.

According to one source, Intel's board is expected to review proposals as early as this month regarding the future of the 18A node for external clients—plans that Tan has asked the company to prepare in anticipation of strategic changes ahead.