Intel May Scrap Latest 18A Manufacturing Technology for External Customers, Signaling a Major Setback
A recent report from Reuters suggests that Intel Corporation may be planning to discontinue its advanced 18A manufacturing process for external clients, representing a significant challenge for the company’s ambitions to compete with Taiwan Semiconductor Manufacturing Company (TSMC) at the cutting edge of chip manufacturing technology.
Background on Intel’s 18A Technology
The 18A process, touted during former CEO Patrick Gelsinger’s tenure, was presented as a critical innovation through which Intel hoped to reassert its dominance in semiconductor manufacturing. Positioned as roughly equivalent to TSMC’s upcoming 2-nanometer (N2) node technology in some key parameters, Intel’s 18A was intended to narrow the gap against the market leader, particularly in transistor performance and efficiency.
However, while TSMC’s 2-nanometer technology is anticipated to enter mass production later this year—potentially with customers such as Apple—it now appears Intel’s 18A process may be sidelined for external foundry clients.
Change in Leadership and Strategic Direction
With Lip-Bu Tan taking over as Intel’s CEO after Gelsinger, insiders suggest a strategic reevaluation has taken place. Sources cited by Reuters indicate Tan views the 18A process as less attractive for Intel’s customers in the foundry business. This shift has reportedly led to consideration of scrapping the 18A node for external customers, which would likely result in significant financial write-offs.
Intel has not officially confirmed these reports. In a statement, the company emphasized its commitment to strengthening its roadmap and building trust with customers, without directly addressing the future of the 18A technology. The statement read, “Lip-Bu and the executive team are committed to strengthening our roadmap, building trust with our customers, and improving our financial position for the future. We have identified clear areas of focus and will take actions needed to turn the business around.”
Potential Impact and Future Plans
Should Intel cease offering the 18A node to external customers, it would be a major setback to the company’s foundry ambitions, limiting high-end manufacturing options for its clients and possibly impacting Intel’s competitiveness in contract chip production. However, the decision is not yet final and might be revisited later this year during board meetings.
The report also suggests that Intel may instead focus on its upcoming 14A manufacturing process to compete with TSMC. Despite the uncertainty over 18A’s external availability, Intel is expected to continue using the process internally and fulfill some orders from major clients such as Amazon and Microsoft.
Industry Context and Speculation
Prior to Tan’s appointment, there were rumors about the potential spin-off of Intel’s foundry business, though the new CEO has neither confirmed nor denied such plans. Redirecting 18A solely for internal use could indicate a deprioritization of Intel’s foundry business, which has been seeking to capture a share of the lucrative contract manufacturing market dominated by TSMC.
This development arrives at a time when the semiconductor industry faces intense competition and rapid evolution, with TSMC moving ahead with ultra-advanced nodes, and Intel striving to keep pace amid leadership changes and strategic recalibrations.
Intel’s decision on the future of its 18A process will be closely watched by industry analysts, clients, and competitors alike, as it could reshape the dynamics of advanced semiconductor manufacturing in the coming years.
