Intel's (INTC, Financial) new CEO, Lip-Bu Tan, is considering a strategic pivot from its 18A chip manufacturing process to the development of a 14A process. This change, reported by Reuters, could lead to significant financial implications, with potential write-offs in the billions for Intel's chip manufacturing technology costs. The shift aims to attract major clients like Nvidia (NVDA) and Apple (AAPL), as Intel seeks to close the gap with competitors such as TSMC in the smartphone and AI chip sectors.
Insiders suggest that the 14A process could offer Intel a technological edge over TSMC, a goal that the delayed 18A process failed to achieve, with its performance roughly on par with TSMC's N2 process. Intel's board is expected to discuss the future of the 18A process in upcoming meetings.
In addition to reevaluating its chip manufacturing strategy, Intel is strengthening partnerships, recently securing a deal to provide processors for Nokia's latest products. Despite these efforts, Intel's stock fell by 1%, although it has risen about 13% since the start of the year, it remains down over 25% over the past 12 months.
