Intel CEO Considers Pivot from Costly 18A Chips to Focus on Promising 14A Technology

Intel’s new CEO, Lip-Bu Tan, is considering a major shift in the company’s chip manufacturing strategy by potentially moving away from the much-touted 18A process in favor of the next-generation 14A. This change could involve ending external marketing of the 18A and 18A-P technologies, which were central to former CEO Pat Gelsinger’s revival efforts. The decision, still under discussion, could lead to a write-off worth hundreds of millions or even billions of dollars due to the massive investments already made.

Since taking over in March 2025, Tan has made rapid internal changes to cut costs and improve efficiency. By June, he signaled that 18A, despite being Intel’s most advanced chip design, lacked sufficient external demand. Although Intel itself remains the lead customer for 18A, producing “Panther Lake” chips, the process has lagged behind Taiwan’s TSMC, whose N2 and N3 technologies are already in production. A strategic redirection to 14A is being seen as a move to regain competitiveness.

According to sources, Intel’s board will weigh the fate of the 18A process at a meeting this month, but a final decision could be delayed until autumn due to the financial implications. Meanwhile, Intel will still fulfill its 18A-related commitments to internal product lines and existing contracts with Amazon and Microsoft. The 18A chips will be delivered as planned, though future marketing may be curtailed depending on the board’s decision.

The potential pivot to 14A is part of a broader play to lure top clients like Apple and Nvidia, who currently rely on TSMC for chip manufacturing. Intel believes it may have a competitive edge with 14A if it aligns the technology with client needs. Tan’s ongoing overhaul of leadership and middle management reflects a broader effort to reposition Intel’s foundry business and improve responsiveness in a fast-evolving semiconductor industry.

Ultimately, Tan’s strategy is still evolving, but his push to abandon 18A for external customers would mark one of the most consequential decisions of his early tenure. The 18A process featured breakthrough innovations like new transistor designs and energy delivery methods, but analysts suggest its performance is on par with TSMC’s older N3 process. By betting on 14A instead, Tan hopes to reclaim Intel’s relevance in a market it once led.

Source: Reuters