Investing.com-- Intel’s (NASDAQ: INTC ) new CEO is weighing a shift in its chip manufacturing strategy that could see it stop marketing its 18A technology to external clients, in a bid to reset its struggling foundry business and court major customers, Reuters reported on Tuesday, citing sources familiar with the matter.
CEO Lip-Bu Tan, who took over in March, has moved quickly to overhaul Intel’s direction after a dismal 2024 marked by an $18.8 billion loss.
By June, Tan had begun questioning the commercial viability of 18A, the advanced chipmaking process championed by his predecessor Pat Gelsinger, the report said.
Pulling back from 18A could trigger a multibillion-dollar write-down, the Reuters report noted.
Intel confirmed it will still use 18A for its own chips and existing obligations to Amazon (NASDAQ: AMZN ) and Microsoft (NASDAQ: MSFT ). But Tan is now prioritizing the development of the next-generation 14A process, which he views as more competitive with TSMC’s leading technology, the report stated.
The move aims to attract major clients like Apple (NASDAQ: AAPL ) and NVIDIA (NASDAQ: NVDA ), who now rely on TSMC for chip production, Reuters reported.
The board is expected to discuss the proposal later this month, though a decision may not come until autumn, the report added.