Intel Considers Skipping 18A Process for 14A to Compete with TSMC

Market IntelFriday, Jul 4, 2025 12:07 am ET
1min read

Intel Corporation is considering a significant shift in its foundry business strategy, aiming to bypass the 18A manufacturing process and directly adopt the 14A process. This move is part of a broader reform initiative led by the company's new CEO, Pat Gelsinger, to attract major clients such as

and . Industry insiders have indicated that the 18A process has encountered difficulties in attracting new customers, prompting Gelsinger to redirect resources towards the 14A node, which is seen as more competitive against industry leader .

The potential decision to halt further development of the 18A process could result in asset impairments ranging from several hundred million to several billion dollars. This complex and financially significant decision is expected to be finalized during the company's autumn board meeting. However, it is important to note that this potential adjustment will not affect Intel's internal product division or existing external clients, such as

and AWS, who continue to use the 18A series.

Morgan Stanley has commented on this development, stating that the short-term impact of this move is minimal. The firm maintains a "hold" rating on Intel's stock. Joseph Moore, leading the analyst team, noted in a recent investor report, "In a sense, the ambition of the 18A process has already been scaled back. We believe the potential impact of these measures is small, and the write-down is minimal." Moore further explained that even in the most optimistic scenarios, clients would start with smaller projects to evaluate Intel's capabilities, which would involve relatively low capital expenditures. Intel's management has consistently emphasized that achieving profitability in the foundry business relies minimally on external clients. Therefore, these changes are not expected to have a significant economic impact in 2025/26.

Despite recent challenges,

maintains a substantial market share in the client and server CPU markets. Analysts highlight that the market seems to be seeking a faster solution, although Gelsinger has repeatedly cautioned that this will be a lengthy process. There have been various reports suggesting unrealistic business splits or joint ventures, but believes that Intel's success in the processor market is sufficient. However, there is uncertainty about whether the market shares this perspective.

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