Semiwiki on LinkedIn Semiwiki on Facebook Semiwiki on Twitter Register / Log in 
Array
(
    [content] => 
    [params] => Array
        (
            [0] => /forum/threads/exclusive-intels-new-ceo-explores-big-shift-in-chip-manufacturing-business.23122/page-2
        )

    [addOns] => Array
        (
            [DL6/MLTP] => 13
            [Hampel/TimeZoneDebug] => 1000070
            [SV/ChangePostDate] => 2010200
            [SemiWiki/Newsletter] => 1000010
            [SemiWiki/WPMenu] => 1000010
            [SemiWiki/XPressExtend] => 1000010
            [ThemeHouse/XLink] => 1000970
            [ThemeHouse/XPress] => 1010570
            [XF] => 2021770
            [XFI] => 1050270
        )

    [wordpress] => /var/www/html
)

Exclusive: Intel's new CEO explores big shift in chip manufacturing business

What a ridiculous title. Intel Foundry never had a shot at Apple business.

Is this the same person? Or did AI steal an identity?

https://www.linkedin.com/in/naumanhk/

Intel (INTC) May Kill 18A in Billion-Dollar Bid for Apple, Nvidia
Nauman khan
Wed, July 2, 2025 at 4:58 AM PDT

Yahoo is using AI to generate takeaways from this article. This means the info may not always match what's in the article. Reporting mistakes helps us improve the experience.

Key Takeaways
  • Intel CEO Lip-Bu Tan is considering ending marketing of its 18A process to focus on 14A technology due to struggles in winning new external customers.
  • The potential shift could lead to a one-time write-off of several hundred million to potentially over a billion dollars, with the board expected to decide on the matter at its fall meeting.

  • Intel will continue to honor 18A commitments to Amazon and Microsoft, while investors will be monitoring whether a pivot to 14A can deliver the performance gains and customer wins Tan is aiming for.
 
Daniel Nenni said:
What a ridiculous title. Intel Foundry never had a shot at Apple business.

Is this the same person? Or did AI steal an identity?

https://www.linkedin.com/in/naumanhk/

Intel (INTC) May Kill 18A in Billion-Dollar Bid for Apple, Nvidia
Nauman khan
Wed, July 2, 2025 at 4:58 AM PDT

Yahoo is using AI to generate takeaways from this article. This means the info may not always match what's in the article. Reporting mistakes helps us improve the experience.

Key Takeaways
  • Intel CEO Lip-Bu Tan is considering ending marketing of its 18A process to focus on 14A technology due to struggles in winning new external customers.
  • The potential shift could lead to a one-time write-off of several hundred million to potentially over a billion dollars, with the board expected to decide on the matter at its fall meeting.

  • Intel will continue to honor 18A commitments to Amazon and Microsoft, while investors will be monitoring whether a pivot to 14A can deliver the performance gains and customer wins Tan is aiming for.
Click to expand...
Also how does 18A is getting killed for Nvidia and Apple this has to pass through AI multiple times 🤣
 
siliconbruh999 said:
well Intel got 2 customers(AWS/Microsoft) ON 18a :) you can say the volume for those customer is low but saying no customers is kind of misleading
Click to expand...
You are correct.... they did announce customers so i may have exaggerated with "no customers" .... my bad :)

but even then, lets talk IF the production stepping that is used in servers for those two customers tapes out on 18A. LBT has things changing more quickly than I expected.

@dkr1986
 
MKWVentures said:
You are correct.... they did announce customers so i may have exaggerated with "no customers" .... my bad :)

but even then, lets talk IF the production stepping that is used in servers for those two customers tapes out on 18A. LBT has things changing more quickly than I expected.

@dkr1986
Click to expand...

I am not aware of any 18A external tape-outs thus far and that includes Amazon and Microsoft. Maybe we will hear more about customers on the next investor call. With the staffing cuts that is going to be a big call.
 
For any fabless to gain confidence in IFS requires four things
1) Accurate and Stable PDK
2) high yield
3) schedule confidence
4) track record

Not sure why anyone thinks after last three generations Intel would deliver on 14A

Being on Lip-Bu’s personal Rolodex won’t help Intel fix these
 
XYang2023 said:
20 days, 2/3
Click to expand...
I am not sure Intel will give much of an update until any deals are finalized. My opinion/understanding is:
1) external foundry has minimal volume in the next 3 years based on the past 4 years of marketing and business development. Any 18A wins going forward wont ramp until 2029.
2) Intel most likely has locked in some DOD items. These are low volume and will take forever (like 2030+). but they are real.
3) It is not clear how intel foundry is financially viable if they have to wait and organically grow over the next 10 years. The maths aint mathing and there are some serious JV requirements
4) Intel internal volume cannot pay for development and fab build costs, volume is too low. This has been a problem for past 10 years.
5) LBT is looking at solutions.... not "just wait it will be great next time" or "it will take 10 years to build a foundry business"
- Get JV, partnership, with a few major foundry customers... give them a reason to use Intel and not be direct competition with TSMC
- Get JV, Partnership with other foundries. UMC has always made sense, GF makes sense, even Samsung makes sense.
- Go back to the pre-Pat plan. Outsource, stop process development, get out of IFS.

the Challenge with all of these is what @BruceA said. Intel has to deliver on 18A, and fixing ifs finances, or no one will want to partner with them or buy from them.

I think we will see some major changes announced across Intel over the next 9 months to try to fix the balance sheet.
 
MKWVentures said:
I am not sure Intel will give much of an update until any deals are finalized. My opinion/understanding is:
1) external foundry has minimal volume in the next 3 years based on the past 4 years of marketing and business development. Any 18A wins going forward wont ramp until 2029.
2) Intel most likely has locked in some DOD items. These are low volume and will take forever (like 2030+). but they are real.
3) It is not clear how intel foundry is financially viable if they have to wait and organically grow over the next 10 years. The maths aint mathing and there are some serious JV requirements
4) Intel internal volume cannot pay for development and fab build costs, volume is too low. This has been a problem for past 10 years.
5) LBT is looking at solutions.... not "just wait it will be great next time" or "it will take 10 years to build a foundry business"
- Get JV, partnership, with a few major foundry customers... give them a reason to use Intel and not be direct competition with TSMC
- Get JV, Partnership with other foundries. UMC has always made sense, GF makes sense, even Samsung makes sense.
- Go back to the pre-Pat plan. Outsource, stop process development, get out of IFS.

the Challenge with all of these is what @BruceA said. Intel has to deliver on 18A, and fixing ifs finances, or no one will want to partner with them or buy from them.

I think we will see some major changes announced across Intel over the next 9 months to try to fix the balance sheet.
Click to expand...
I think people will definitely ask the question during the earning call. For Intel, they have to find one or two large customers to make 14A work.
 
count said:
When 14A flops I’m sure the next CEO will come up with a new way to spin how Intel is still a leader.
Click to expand...

18A is not a flop. The 18A PDK flopped for external use, different thing. From what I am told 18A yield is good.

If 14A does not yield Intel will be fabless. Hopefully Lip-BU put a hold on HNA-EUV to reduce risk.

I still say Intel could do deals with Samsung, GlobalFoundries, etc... like they did with UMC. Intel could be the foundry's foundry to fill up their fabs.
 
Daniel Nenni said:
18A is not a flop. The 18A PDK flopped for external use, different thing. From what I am told 18A yield is good.

If 14A does not yield Intel will be fabless. Hopefully Lip-BU put a hold on HNA-EUV to reduce risk.

I still say Intel could do deals with Samsung, GlobalFoundries, etc... like they did with UMC. Intel could be the foundry's foundry to fill up their fabs.
Click to expand...
Intel planned on about 3x the number of wafers for 18A that they will actually run (assuming 18A continues). so that is a flop. Volume is what pays for TD and new fabs .... that was the Intel problem statement before Pat . the financial numbers for 18A look really problematic now

18A was supposed to be ahead of N2 so how did TSMC get 10x more tapeouts lined up than Intel 6 months before either process is qualified?

"I still say Intel could do deals with Samsung, GlobalFoundries, etc... like they did with UMC. Intel could be the foundry's foundry to fill up their fabs." - 1000% agree

I don't know how IFS can survive waiting to get to 14A. I would love to see the spreadsheet that shows this is possible. I think LBT has other plans that have not been announced yet.
 
You must log in or register to reply here.
Back
Top