Intel now reportedly focusing on 14A production as 18A proves to be a billion dollar failure

The situation at Intel is going from bad to worse. After the company reported a record loss of $18.8 billion in fiscal year 2024 and CEO Pat Gelsinger was forced to leave the company, delays in the development of the Intel 18A manufacturing process are now rendering it obsolete and therefore uncompetitive. According to a Reuters report, Intel is facing delays, while TSMC's N2 production is on schedule.

According to Reuters' sources, Intel currently plans to use Intel 18A and Intel 18A-P only for the production of Intel chips and will no longer actively market them to new customers. A "small quantity" of chips for Amazon and Microsoft will be produced using Intel 18A. Intel's next-generation "Panther Lake" laptop processors are expected to be manufactured using the 18A process starting in the second half of 2025. According to Reuters, Intel 18A is most likely comparable to TSMC N3, with the difference that the N3 process has been capable of mass-producing chips since 2022.

To better position itself against TSMC and Samsung Foundry, the company is said to be focusing more on Intel 14A, the next-generation manufacturing process that purportedly offers advantages over TSMC. The plan is to use this process to at least partially lure major customers such as Apple and Nvidia away from TSMC. However, Intel is yet to make a final decision regarding its strategy surrounding Intel 18A and Intel 14A. Possible strategies are to be discussed at a supervisory board meeting in July, and final decisions are expected to be made at a meeting in the fall at the latest.