Latest news with #14A
Yahoo
09-07-2025
- Business
- Yahoo
Intel reportedly considering major strategy change in manufacturers like Ohio plant
NEW ALBANY, Ohio (WCMH) — Intel's new CEO Lip-Bu Tan is reportedly considering a major change to Intel's manufacturing division, including Ohio's plant. According to reports, Tan is debating a strategic change for Intel Foundry, the Intel division responsible for chip manufacturing and the $28 billion Intel Ohio One plant that is under construction. If implemented, Intel would no longer market a major service, 18A, to new external customers. Intel has indicated 18A will be used in Ohio's facilities. Intel did not confirm the reports, instead choosing not to comment on 'market rumors and speculation.' What's the effect of Governor's line-item vetoes on Ohio public school funding? 'As we have said previously, we are committed to strengthening our roadmap, delivering for our customers and improving our financial position for the future,' an Intel spokesperson told NBC4. Intel is primarily comprised of two main divisions: Intel Products and Intel Foundry. Products is in charge of marketing physical goods, and Foundry is in charge of the manufacturing of goods. Semiconductors are small and complex, so Intel Foundry explores methods of making them effectively. Ohio's plant, as a Foundry operation, plans to manufacture products made by both Intel and outside companies. Reports say Intel is considering moving away from 18A, a process node that will be ready for mass production later this year. Intel said process nodes are like a 'recipe and list of ingredients used in semiconductor manufacturing.' Intel has been promoting 18A for some time, so cutting external customers would be a big shift in the company's Foundry strategy. Instead, Intel would reportedly focus on 14A, which the company said is also being designed as a process node. Intel estimates 14A will be available in 2027, so ditching 18A would likely limit Intel from getting new external Foundry customers for nearly two years. How to get unclaimed funds in Ohio before they go to the Browns In Ohio, where construction has been delayed into 2031, it's unlikely the switch would have a direct effect, unless it is too costly and requires larger changes at Intel. Industry analysts predict the proposal would be a financially risky decision, as the company has invested billions in 18A. Analysts said the company would likely need to take a write-off if it moves forward with this proposal, costing Intel hundreds of millions or billions of dollars. Removing 18A for external customers would still leave one major customer for the Foundry: Intel Products. Intel is the largest customer for 18A technology, and the company intends to use 18A to mass produce its new Panther Lake technology this year, a new computer chip Intel believes will be the most advanced processor ever made in the U.S. It's expected that Ohio's two semiconductor fabs will use 18A technology. Intel said Ohio's plant will build the 'most advanced semiconductor processors in the U.S.,' so it's likely the New Albany plant will produce Panther Lake technology using 18A. Last week, Intel announced it will unveil its Q2 financial results on July 24, which will offer more insight into how Intel is doing. Intel confirmed it will enact substantial layoffs this summer, the details of which are also more likely to come to light with the Q2 results. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Insider
03-07-2025
- Business
- Business Insider
Intel Stock: What Effect Will Foundry Strategy Shift Have? Morgan Stanley Weighs In
After years of lagging behind rivals like TSMC, Intel (NASDAQ:INTC) has been trying to re-establish itself as a leading chip manufacturer – not just for its own products, but as a foundry for others as well. Don't Miss TipRanks' Half-Year Sale Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week. Its foundry strategy has so far revolved around its 18A process node, which was originally expected to launch next year. The 18A node is the fifth and final step in former CEO Pat Gelsinger's ambitious 'five nodes in four years' roadmap – a plan designed to rapidly reclaim process technology leadership. At one point, 18A was billed as the node that would give Intel 'unquestioned leadership' in the space. On the product side, Intel's next-generation PC chips, known as Panther Lake, are expected to arrive in the second half of this year, built on the 18A process. Server chips under the Clearwater Forest line are slated for 2026, with the possibility of onboarding external foundry customers sometime later next year. However, that focus might now be shifting. According to a Reuters report that cites 'unnamed Intel sources,' the company is considering pulling back on its foundry plans for the 18A process node in order to shift resources toward its next-generation node, known as 14A. That process is expected to enter risk production next year, with internal use slated for 2027. If true, the move could result in a writedown potentially amounting to hundreds of millions – or even billions – of dollars. The report suggests Intel would still fulfil limited 18A foundry commitments it has already made, but would largely pivot its foundry strategy to 14A going forward. While it's not clear yet whether the report is true, Morgan Stanley analyst Joseph Moore believes that shifting the foundry focus to 14A wouldn't be 'economically disruptive, given low 18A expectations.' To some extent, Intel had already dialed back its ambitions for 18A, so the potential impact from the reported shift – and any associated writedown – appears 'minimal' to Moore. Even under the most optimistic outlook, prospective foundry customers were expected to start with small-scale projects to evaluate Intel's capabilities, meaning the capital tied to those efforts was always going to be modest. Management has consistently stressed that reaching breakeven on the foundry business doesn't rely heavily on external customers in the near term. 'So for 2025/26, none of this will have much economic impact,' Moore opined. That said, while the initial foundry projects were always expected to be small in scale, pushing their start out by a year or two would also delay any meaningful volume ramp. 'We are generally pessimistic about foundry contributing to profits in an investable time frame anyway, so it doesn't change our view that much, but we can see why foundry optimists saw this as a negative,' Moore said on the matter. And while Moore sees the value in Intel, he shares CEO Lip Bu Tan's view that this is a 'long path to recovery.' Accordingly, Moore stays on the INTC sidelines for now, maintaining an Equal-weight (i.e., Neutral) rating and $23 price target, suggesting the shares are fully valued. (To watch Moore's track record, click here) 25 other analysts join Moore on the fence while 1 Buy and 4 Sells can't alter a Hold consensus rating. Going by the $21.35 average target, a year from now, shares will be changing hands for a 5% discount. (See Intel stock forecast) To find good ideas for stocks trading at attractive valuations, visit TipRanks' Best Stocks to Buy, a tool that unites all of TipRanks' equity insights. Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.
Yahoo
03-07-2025
- Business
- Yahoo
Intel might axe the 18A process node for foundry customers, essentially leaving TSMC with no rival — Intel reportedly to focus on 14A (Updated)
When you buy through links on our articles, Future and its syndication partners may earn a commission. Lip-Bu Tan, the chief executive of Intel, is considering stopping the promotion of the company's 18A fabrication technology (1.8nm-class) to foundry customers, instead shifting the company's efforts to its next-generation 14A manufacturing process (1.4nm-class) in a bid to secure orders from large customers like Apple or Nvidia, reports Reuters. If this shift in focus occurs, it would be the second node in a row that Intel has deprioritized. The proposed adjustment could result in major financial consequences and alter the trajectory of Intel's foundry operations, as it will effectively withdraw the company from the foundry market for several years. Intel informs us that the information is based on market speculation. However, the spokesperson provided some additional insight on the company's roadmap, which we've added further below.'We are not going to comment on market rumors and speculation," an Intel spokesperson said to Tom's Hardware. "As we have said previously, we are committed to strengthening our roadmap, delivering for our customers and improving our financial position for the future." After taking the helm in March, Lip-Bu Tan announced intentions to cut costs in April, which is expected to involve layoffs and the cancellation of certain projects. According to the new report, by June, he began sharing with colleagues that the 18A manufacturing process — a technology designed to showcase Intel's manufacturing prowess — was losing appeal to outside customers, which is why he believed it made sense for the company to shift away from offering 18A and its performance-enhanced 18A-P version to foundry customers. Instead, Lip-Bu Tan proposed directing more resources to the completion and promotion of 14A, the company's next-generation node, which will be ready for risk production in 2027 and for volume production in 2028. Given the timing of 14A, it is now time to start promoting it among potential third-party Intel Foundry clients. Intel's 18A fabrication technology is the company's first node to utilize its 2nd-generation RibbonFET gate-all-around (GAA) transistors, along with a PowerVia backside power delivery network (BSPDN). By contrast, 14A utilizes RibbonFET 2 transistors, PowerDirect BSPDN, which delivers power directly to each transistor's source and drain through specialized contacts, and features Turbo Cells for critical paths. In addition, 18A is Intel's first leading-edge technology that is compatible with third-party design tools and can be used by its foundry customers. Dropping external sales of 18A and 18A-P would require Intel to account for a substantial write-off reflecting the billions it spent developing the manufacturing technologies, according to individuals familiar with internal deliberations cited by Reuters. Depending on how you count development costs, the resulting charge could total hundreds of millions or even billions of dollars. Both RibbonFET and PowerVia were initially developed for 20A, but that technology was cancelled for internal products last August in a bid to focus on 18A for both internal and external products. Intel's rationale behind the move may be rather simple. By limiting the number of potential customers for 18A, the company may potentially cut its operating costs. The majority of tools required for 20A, 18A, and 14A (except for High-NA EUV equipment) are already in place at its Fab D1D in Oregon, as well as at Fabs 52 and 62 in Arizona. However, once these tools are formally put into operation, the company will have to report their depreciation as a cost. Not putting them online potentially enables Intel to cut its costs amid uncertainties with orders from third-party clients. In addition, by not offering 18A and 18A-P to external customers, Intel may save money on engineers dedicated to supporting the sampling, ramp, and mass production of third-party circuits at Intel fabs. Obviously, this is speculation on our side. However, by ceasing to offer 18A and 18A-P to external clients, Intel will be unable to demonstrate advantages of its fabrication nodes to a broad range of customers with various designs, which would leave them with a single choice for next two or three years: go with TSMC and use N2, N2P, or even A16. Although Samsung is set to formally start making chips on its SF2 (also known as SF3P) node later this year, that node is expected to be behind Intel 18A and TSMC's N2 and A16 in terms of power, performance, and area. Essentially, Intel would not be showing up to its fight against TSMC's N2 and A16, which will certainly not help to gain the confidence of potential clients towards other Intel offerings, namely 14A, 3-T/3-E, Intel/UMC 12nm, and others. Reuters' sources familiar with the matter explained that Lip-Bu Tan had asked Intel's specialists to prepare proposals for discussion with Intel's board this fall. Options could include ceasing efforts to sign up new clients for 18A, though given the scale and complexity of the issue, the decision might not be finalized until the board meets again later this year. Intel itself reportedly declined to discuss hypothetical scenarios but confirmed that the main customer for 18A has always been its own Products division, which plans to begin producing codenamed Panther Lake CPUs for laptops in 2025 using this technology. Eventually, 18A and 18A-P will be adopted by Clearwater Forest, Diamond Rapids, and Jaguar Shores products. Intel's push to attract large-scale external clients to its Intel Foundry fabs remains critical to its turnaround, as only with high volumes the company will be able to pay off for its process technologies that cost billions to develop. However, in addition to Intel itself, only Amazon, Microsoft, and the U.S. Department of Defence have formally confirmed plans to use 18A. While Broadcom and Nvidia are also reportedly testing Intel's latest process technology, they have yet to commit to using it for actual products. Intel's 18A has one key advantage over TSMC's N2: it features backside power delivery, which is particularly useful for power-hungry processors aimed at AI and HPC applications. TSMC's A16 with Super Power Rail (SPR) will only enter mass production in late 2026, so 18A will maintain the advantage of offering backside power delivery for Amazon, Microsoft, and potentially other customers for a while. However, N2 is expected to offer higher transistor density, which is beneficial for the vast majority of chip designs. Furthermore, while Intel has been running Panther Lake silicon at its D1D fab for quarters (so, currently Intel is still in risk production using 18A), the company's high-volume Fab 52 and Fab 62 started to run 18A test silicon this March, so they will start producing commercial chips only late in 2025, or rather in early 2025. Intel's external customers are, of course, interested in producing their designs at high-volume fabs in Arizona rather than at development fabs in Oregon. Intel CEO Lip-Bu Tan is reportedly considering halting the promotion of the company's 18A fabrication process to external clients and instead focusing on the next-generation 14A production node, aiming to attract large customers such as Apple and Nvidia. The move could trigger massive write-offs, as Intel has spent billions developing 18A and 18A-P process technologies. Shifting focus to 14A could help cut costs and better prepare the node and operations for third-party clients, but the move risks undermining customer confidence in Intel's foundry capabilities ahead of 14A's planned production in 2027–2028. While the 18A node remains critical for Intel's own products, such as Panther Lake CPUs, limited demand from third parties — so far, only Amazon, Microsoft, and the U.S. Department of Defense have confirmed plans to use it — has raised concerns about its viability. The potential decision — which will essentially withdraw Intel from the broad foundry market until 14A comes to market — will be reviewed by Intel's board later this year. Even if Intel eventually chooses to remove 18A from its foundry offerings, aimed at a broad range of applications and clients, the company will still manufacture chips using 18A for its own products, which are already designed for the process. It also intends to fulfill limited orders it has already committed to, including supplying chips for the aforementioned clients. Follow Tom's Hardware on Google News to get our up-to-date news, analysis, and reviews in your feeds. Make sure to click the Follow button.
Time of India
03-07-2025
- Business
- Time of India
Intel's new CEO explores big shift in chip manufacturing business
Intel 's new chief executive is exploring a big change to its contract manufacturing business to win major customers, two people familiar with the matter told Reuters, in a potentially expensive shift from his predecessor's plans. If implemented, the new strategy for what Intel calls its "foundry" business would entail no longer marketing certain chipmaking technology, which the company had long developed, to external customers, the people said. Since taking the company's helm in March, CEO Lip-Bu Tan has moved fast to cut costs and find a new path to revive the ailing U.S. chipmaker. By June, he started voicing that a manufacturing process that prior CEO Pat Gelsinger bet heavily on, known as 18A, was losing its appeal to new customers, said the sources, who spoke on condition of anonymity. To put aside external sales of 18A and its variant 18A-P, manufacturing processes that have cost Intel billions of dollars to develop, the company would have to take a write-off, one of the people familiar with the matter said. Industry analysts contacted by Reuters said such a charge could amount to a loss of hundreds of millions, if not billions, of dollars. Intel declined to comment on such "hypothetical scenarios or market speculation." It said the lead customer for 18A has long been Intel itself, and it aims to ramp production of its "Panther Lake" laptop chips later in 2025, which it called the most advanced processors ever designed and manufactured in the United States. Persuading outside clients to use Intel's factories remains key to its future. As its 18A fabrication process faced delays, rival TSMC's N2 technology has been on track for production. Tan's preliminary answer to this challenge: focus more resources on 14A, a next-generation chipmaking process where Intel expects to have advantages over Taiwan's TSMC, the two sources said. The move is part of a play for big customers like Apple and Nvidia, which currently pay TSMC to manufacture their chips. Tan has tasked the company with teeing up options for discussion with Intel's board when it meets as early as this month, including whether to stop marketing 18A to new clients, one of the two sources said. The board might not reach a decision on 18A until a subsequent autumn meeting in light of the matter's complexity and the enormous money at stake, the person said. Intel declined to comment on what it called rumor. In a statement, it said: "Lip-Bu and the executive team are committed to strengthening our roadmap, building trust with our customers, and improving our financial position for the future. We have identified clear areas of focus and will take actions needed to turn the business around." Last year was Intel's first unprofitable year since 1986. It posted a net loss attributable to the company of $18.8 billion for 2024. The Intel chief executive's deliberations show the enormous risks - and costs - under consideration to move the storied U.S. chipmaker back onto solid footing. Like Gelsinger, Tan inherited a company that had lost its manufacturing edge and fell behind on crucial technology waves of the past two decades: mobile computing and artificial intelligence. The company is targeting high-volume production later this year for 18A with its internal chips, which are widely expected to arrive ahead of external customer orders. Meanwhile, delivering 14A in time to win major contracts is by no means certain, and Intel could choose to stick with its existing plans for 18A, one of the sources said. Intel is tailoring 14A to key clients' needs to make it successful, the company said. AMAZON AND MICROSOFT ON 18A Tan's review of whether to focus clients on 14A involves the contract chipmaking portion of Intel, or foundry, which makes chips for external customers. Regardless of a board decision, Intel will make chips via 18A in cases where its plans are already in motion, the people familiar with the matter said. This includes using 18A for Intel's in-house chips that it already designed for that manufacturing process, the people said. Intel also will produce a relatively small volume of chips that it has guaranteed for and Microsoft via 18A, with deadlines that make it unrealistic to wait for the development of 14A. Amazon and Microsoft did not immediately comment on the matter. Intel said it will deliver on its customer commitments. Tan's overall strategy for Intel remains nascent. So far, he has updated his leadership team, bringing in new engineering talent, and he has worked to shrink what he considered bloated and slow-moving middle management. Shifting away from selling 18A to foundry customers would represent one of his biggest moves yet. The 18A manufacturing process includes a novel method of delivering energy to chips and a new type of transistor. Together, these enhancements were meant to let Intel match or exceed TSMC's capabilities, Intel executives have previously said. However, according to some industry analysts, the 18A process is roughly equivalent to TSMC's so-called N3 manufacturing technology, which went into high-volume production in late 2022. If Intel follows Tan's lead, the company would focus its foundry employees, design partners and new customers on 14A, where it hopes for a better chance to compete against TSMC.
Time of India
03-07-2025
- Business
- Time of India
Intel CEO Lip-Bu Tan may be planning big change to company's contract manufacturing business, abandoning technology Intel has spent millions working on
Intel's new CEO, Lip-Bu Tan, is reportedly exploring a significant overhaul of the company's contract manufacturing, or "foundry," business, potentially abandoning efforts to market its 18A chipmaking technology to external customers, two sources familiar with the matter told Reuters. According to the Reuters' report, the move, a departure from former CEO Pat Gelsinger's strategy, could involve a costly write-off for the struggling U.S. chipmaker. Since taking over in March, Tan has moved swiftly to cut costs and chart a new course for Intel, which reported a $18.8 billion net loss in 2024, its first unprofitable year since 1986. May abandon external sales of 18A and its variant 18A-P According to the sources, who spoke on condition of anonymity, Tan has expressed concerns that the 18A process, a cornerstone of Gelsinger's plan, is losing appeal to new clients. Discontinuing external sales of 18A and its variant 18A-P, which cost billions to develop, could result in a write-off of hundreds of millions, if not billions, of dollars, one source said. Intel declined to comment on "hypothetical scenarios or market speculation," stating that its primary customer for 18A is Intel itself, with plans to ramp up production of its "Panther Lake" laptop chips in late 2025, which it called the most advanced processors ever designed and manufactured in the U.S. What is behind Intel's shift to 14A process by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Giao dịch vàng CFDs với sàn môi giới tin cậy IC Markets Tìm hiểu thêm Undo Instead of focusing on 18A, Tan is directing resources toward Intel's next-generation 14A process, which he believes could give Intel an edge over rival TSMC, the sources said. The shift aims to attract major clients like Apple and Nvidia, who currently rely on TSMC. Tan has tasked Intel's leadership with presenting options to the board as early as this month, though a final decision on 18A may not come until a later meeting this autumn, one source added. Intel reiterated its commitment to strengthening its roadmap and rebuilding customer trust. "Lip-Bu and the executive team are committed to improving our financial position for the future," the company said in a statement. Despite the potential pivot, Intel will honor existing 18A commitments, including producing chips for Amazon and Microsoft, whose deadlines make switching to 14A impractical, the sources said. Amazon and Microsoft did not immediately respond to requests for comment. The 18A process, which includes advanced energy delivery and transistor technology, was intended to rival TSMC's capabilities. However, analysts told Reuters that 18A is comparable to TSMC's N3 process, which entered high-volume production in 2022, while TSMC's N2 technology is on track, highlighting Intel's challenges as it lags in the foundry race. Tan's broader strategy includes streamlining Intel's operations and bolstering engineering talent. Shifting focus to 14A could be one of his boldest moves yet as he seeks to restore Intel's manufacturing leadership, which has waned in the mobile computing and AI eras. Whether Intel can deliver 14A in time to secure major contracts remains uncertain, one source noted, adding that sticking with 18A remains an option.
