Intel Considers Shifting Focus in Foundry Business to Compete with TSMC

Intel is exploring a significant shift in its foundry business under the leadership of CEO Lip-Bu Tan, in a bid to attract major customers such as Apple and Nvidia. This new strategy might involve scaling back the promotion of Intel’s 18A chipmaking technology, which has faced delays and has not generated interest from external clients. Instead, the company is considering focusing more on its 14A manufacturing process, where it believes it could compete more effectively against rival TSMC. This move could be costly, as the company would need to write off billions spent on developing the 18A technology. Intel’s internal chips will continue to be produced using the 18A process, and the company will meet commitments for Amazon and Microsoft, which have already guaranteed chip orders using 18A. However, the shift to 14A may offer better prospects for securing major external clients moving forward. This decision will be discussed at Intel’s board meeting, with potential risks and financial implications to be considered. While the company aims to ramp up production in 2025 with its most advanced processors, the shift represents a significant change in Intel’s chipmaking strategy after a tough period of financial losses and competition with industry leader TSMC.