Intel’s newly appointed CEO, Lip‑Bu Tan, is considering a major strategic pivot—shifting the company’s focus from its current 18A chip manufacturing process to the faster, more competitive 14A node. The decision, if approved, could result in billions of dollars in write-offs but promises to improve Intel’s standing in the high-stakes semiconductor race. With major clients like Apple and Nvidia in view, this move signals a bold commitment to reclaim technological leadership and market confidence.
Intel’s New CEO May Scrap 18A Chips in Billion-Dollar Pivot to 14A
02/07/2025
Intel CEO Lip‑Bu Tan is reportedly considering abandoning the 18A chip process to fast-track the more advanced and competitive 14A node.
Intel’s CEO Tan Charts Bold Shift Toward 14A Chip Era
Since taking the helm in March, Lip‑Bu Tan is weighing a major shift: stepping back from pushing Intel’s costly 18A manufacturing process to external customers and accelerating work on the more competitive 14A node. This bold move could require writing off hundreds of millions—or even billions—of dollars tied up in 18A development.
What's Driving This Change?
Intel’s 18A process has faced delays and is now considered roughly on par with TSMC’s N3 technology. In contrast, 14A promises better performance and could help Intel win high-profile clients like Apple and Nvidia.
Financial & Strategic Implications
Redirecting focus to 14A means Intel may have to absorb write-offs for 18A—potentially in the hundreds of millions to billions range. Despite that, the strategy signals a fresh commitment to revitalize Intel Foundry Services and regain momentum in the competitive chip landscape.
Board Review & Outlook
Intel's board is set to review this transition later this month, with a final decision expected in the fall. Meanwhile, existing commitments—like in-house Panther Lake chips and deals with Microsoft and Amazon—will continue under the 18A process.
Why It Matters
This strategy marks one of Tan’s most significant moves yet, signaling a clear pivot toward agility and client focus. After posting its first loss since 1986 in 2024, Intel is doubling down on innovation to claw back market share from rivals like TSMC and Samsung.
