Intel's new CEO, Chen Lifeng, is reportedly considering a significant overhaul of the company's chip manufacturing strategy to attract major clients, potentially moving away from plans set by his predecessor. This strategic shift could lead Intel to stop marketing certain chip-making technologies to external customers, specifically the 18A manufacturing process, which has been costly to develop.
Since taking over, Chen has initiated cost-cutting measures and sought new strategies for revitalizing the struggling U.S. chipmaker. Industry insiders note that the allure of the 18A process for new clients has diminished, prompting discussions about focusing resources on the next-generation 14A process, which Intel believes will surpass competitors like TSMC.
Intel faces the challenge of convincing external clients to utilize its facilities, as its own operations have primarily used the 18A process. Meanwhile, TSMC's N2 technology continues to advance as planned. Chen's strategy includes preparing multiple options for the company's board, potentially halting the promotion of 18A to new clients. The board is expected to make a decision in upcoming meetings.
Intel remains committed to strengthening its roadmap and improving financial outcomes, focusing on key areas to reverse its current situation.
