Intel reportedly is considering de-emphasizing its long-anticipated, much-hyped 18A process technology, which may not be a terrible idea if it allows Intel to shift more energy and resources into developing next-generation 14a process technology.

It was reported by Reuters that Intel CEO Lip Bu Tan has been mulling a decisive shift away from 18A, with the report noting the CEO’s belief that 18A was losing its appeal among external customers, although Amazon was an early customer and Intel continues to be its own largest customer for 18A.

The report comes after Intel earlier this year described 18A as a “competitive” technology that it was looking forward to leveraging on its own chips and those of external customers. Intel watchers also have viewed 18A, first championed by former CEO Pat Gelsinger, as a key to enabling Intel’s foundry business to catch up to TSMC.

Now, it sounds like Tan, rather than betting so much on a process technology connected to Gelsinger that also has been delayed and associated with alleged performance concerns, is ready to rally the company around what’s next. That would be 14a, which is set to arrive around 2027.

Jack Gold, president and principal analyst of J. Gold Associates, told Fierce Electronics, “My take on this is that [Tan] wants Intel to concentrate on getting its industry-leading ‘mojo’ back. That means not catching up to TSMC, but excelling against them. 18A was important to show Intel can get to advanced nodes, but indications are that it’s not doing as well as Intel hoped, and they are not getting lots of folks to sign up.”

Furthermore, at a time when Tan already has put the company on a track to slash costs, it might be best for Intel to potentially take a write-off on its investment in current technology to invest more in newer technology.

“With the limited resources Intel has given its sales issues and particularly its huge losses in the foundry business, concentrating its limited resources on the future (14A and beyond) makes sense,” Gold said. “I don’t expect them to fully abandon 18A as it does have some customers. But the primary focus going forward will be on 14A and beyond to achieve industry leadership if it can. That’s critical to competing and being a true alternative and/or second source to TSMC with key clients.”

It is still unclear whether or not Intel will distance itself from 18a. Since Gelsinger departed and Tan has taken charge of the company, some have even wondered if Intel would even shut down or sell part of its money-losing foundry business. Shifting away from 18a would be a less drastic measure than that, but perhaps a necessary one as the company looks to get back on track.

Intel is due to report second quarter earnings after markets close on July 24, and the quarterly earnings call is likely to feature some commentary by Intel–and questions from analysts–about 18A’s future.

By: DocMemory
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