Intel CEO Considers Strategic Shift Away from 18A to Win Major Foundry Clients

Intel CEO Lip-Bu Tan is reportedly considering a major change to the company’s foundry strategy by halting promotion of its 18A chipmaking process to external customers, sources told Reuters. This pivot could mark a costly departure from former CEO Pat Gelsinger’s vision and involve write-offs potentially worth hundreds of millions or more.

Since taking over in March, Tan has sought to streamline operations and refocus Intel’s manufacturing roadmap. He reportedly sees the 18A process—once pitched as a TSMC competitor—as losing traction among new clients, despite billions already invested. While Intel will still use 18A for internal chips like Panther Lake and fulfill existing commitments to Amazon and Microsoft, the emphasis is expected to shift toward 14A, a newer process where Intel hopes to outperform TSMC’s N2 node.

Intel stated it remains committed to customer trust and financial improvement but declined to comment on specific roadmap speculation. The company also reaffirmed that 18A internal production remains on track for late 2025.

Tan is pushing for 14A to be tailored to meet high-value customer needs, targeting chip giants like Apple and Nvidia, both currently relying on TSMC. Intel’s board is expected to review strategic options as early as this month, though a final decision may be delayed due to the stakes involved.

After posting an $18.8 billion net loss in 2024—its first unprofitable year since 1986—Intel faces mounting pressure to reclaim its manufacturing edge. Tan has already overhauled leadership and is downsizing middle management to restore agility.

If Intel abandons external sales of 18A in favor of focusing on 14A, it could mark a bold move to regain competitiveness in the contract chipmaking market.