According to Reuters, Intel is reportedly considering a major shift in its foundry business, aiming to move away from its 18A node in favor of the next-generation 14A process for new foundry clients—where it believes it can gain a competitive edge over TSMC. The move is part of Intel’s broader effort to attract major customers such as Apple and NVIDIA, who currently rely on TSMC for chip production, the report states, citing sources.
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The report highlights that if Intel decides to discontinue external sales of its 18A and 18A-P processes—technologies that have required billions in development—the company would likely need to record a write-off. Reuters, citing sources, notes that such a charge could result in losses reaching hundreds of millions or even billions of dollars.
As the report states, citing sources, CEO Lip-Bu Tan has instructed the company to prepare proposals for the board to review as early as this month, including the option of halting efforts to market the 18A process to new foundry customers. Tan has reportedly voiced concerns that 18A is becoming less appealing to potential clients, the report adds.
Given the complexity of the issue and the significant financial implications, the board may postpone a final decision on 18A until a follow-up meeting in the fall, according to the report, citing sources.
The report also notes, citing sources, that Intel will continue producing chips using 18A where plans are already in motion, regardless of the board’s decision. This includes a relatively small volume of chips committed to Amazon and Microsoft, with delivery timelines that make waiting for the 14A process impractical.
When asked whether it plans to shift focus away from 18A, Intel declined to comment. According to the report, the company says the primary customer for 18A is Intel itself, and it plans to ramp up production of its “Panther Lake” laptop chips in late 2025, which it claims will be the most advanced processors ever designed and manufactured in the U.S.
Intel Advances 14A Development in Collaboration with Clients
At its Intel Foundry Direct Connect 2025 event in April, Intel announced it is working closely with lead customers on its upcoming 14A process, which is expected to deliver a 15–20% performance gain and 25–35% lower power consumption compared to 18A.
According to TechNews and Economic Daily News, citing Intel’s roadmap, both 14A and its enhanced variant 14A-E are slated to begin risk production in 2027. Wccftech notes that 14A will feature Intel’s second-generation backside power delivery technology, PowerDirect—putting it two generations ahead of TSMC.