Intel's (INTC, Financial) new CEO, Lip-Bu Tan, is mulling a significant overhaul of the company's foundry business strategy to attract large customers, diverging from the plans of former CEO Pat Gelsinger. The potential shift involves ceasing external sales of certain chip manufacturing technologies, including the 18A process, which has been losing appeal since Tan's appointment in March. The move could entail substantial financial losses, potentially reaching billions in development costs.
Intel aims to enhance its Panther Lake laptop chips by late 2025, positioning them as the most advanced processors designed and manufactured in the U.S. Meanwhile, with delays in the 18A process and the competitive edge of TSMC's (2330) N2 technology, Intel seeks to focus on its next-generation 14A process to win major clients like Apple (AAPL) and NVIDIA (NVDA). Plans for this shift are set to be discussed at an upcoming board meeting.
Intel faces financial challenges, having reported a net loss of $18.8 billion in 2024, its first since 1986, highlighting its declining advantage in mobile computing and AI. The company plans to adjust its 14A design to meet key customer demands.
