Intel faces major trouble with its newest chip technology. The computer giant plans to dump its 18A manufacturing process for outside customers. Former boss Patrick Gelsinger had staked the entire company on this technology. He wanted Intel to beat Taiwan rival TSMC in the advanced chip race. The strategy appears to have backfired under new leadership.
Current chief Lip-Bu Tan thinks the 18A process cannot attract enough business clients. Reuters sources claim Intel will abandon external sales of the technology. The company refuses to discuss the reported decision publicly. Scrapping 18A could cost Intel millions of dollars in losses. The move would hurt Intel's chances of competing with TSMC for manufacturing contracts.
Intel's 18A technology matches some features of TSMC's cutting-edge 2-nanometer process. TSMC plans to start mass production of its advanced chips later this year. Apple will likely become the first major customer for the new technology. Intel hoped 18A would help close the technology gap with its Asian competitor. The plan seems to have failed before reaching the market.
The chip maker might focus on its 14A technology to challenge TSMC instead. Board members will make the final choice about 18A during meetings later this year. Intel promises to complete existing orders for Amazon and Microsoft customers. Company officials remain tight-lipped about future manufacturing plans. The foundry business faces an uncertain future without breakthrough technology.
Current chief Lip-Bu Tan thinks the 18A process cannot attract enough business clients. Reuters sources claim Intel will abandon external sales of the technology. The company refuses to discuss the reported decision publicly. Scrapping 18A could cost Intel millions of dollars in losses. The move would hurt Intel's chances of competing with TSMC for manufacturing contracts.
Intel's 18A technology matches some features of TSMC's cutting-edge 2-nanometer process. TSMC plans to start mass production of its advanced chips later this year. Apple will likely become the first major customer for the new technology. Intel hoped 18A would help close the technology gap with its Asian competitor. The plan seems to have failed before reaching the market.
The chip maker might focus on its 14A technology to challenge TSMC instead. Board members will make the final choice about 18A during meetings later this year. Intel promises to complete existing orders for Amazon and Microsoft customers. Company officials remain tight-lipped about future manufacturing plans. The foundry business faces an uncertain future without breakthrough technology.
