Intel was the absolute overlord of the global semiconductor industry, but over the past 20 years, he has failed to grasp the wave of key technologies such as mobile computing and artificial intelligence (AI) in a timely manner, and his advantages ha...
Intel was the absolute overlord of the global semiconductor industry, but over the past 20 years, he has failed to grasp the wave of key technologies such as mobile computing and artificial intelligence (AI) in a timely manner, and his advantages have gradually been lost, and his technical process has also begun to fall behind. In 2024, Intel spent the first year since 1986, with a total net worth of US$1.88 billion, causing former executive Pat Gelsinger to step down.
In March 2025, after taking office, the new executive Lip-Bu Tan faced a mission to revive the troubled American chip manufacturer. He quickly adopted action to reduce costs and looked for new development paths. Among them, one of the biggest strategic changes explored by Chen Liwu is the change in Intel's crystal foundry business, that is, the chip production business for external customers. Unlike former executive officer Pat Gelsinger, who has high hopes for Intel 18A and invests in the hope that Intel can compete with and even surpass NT$10. After taking office, Chen Liwu found that Intel 18A's attractiveness to new customers is decreasing.
According to Yahoo Financial Report, some market analysts said that Intel 18A process technology is approximately equivalent to Telco's N3 manufacturing technology, and Telco's N3 has entered large-scale production as early as the end of 2022. In addition, NTEC N2 has made smooth progress and is invested on time, which has an impact on Intel 18A.
Chen Liwu is considering a major adjustment of the crystalline foundry business and stop promoting long-term development processes, including Intel 18A and improved Intel 18A-P. If confirmed to be executed, Intel's $18A development costs will be listed as capital.
quoting people familiar with the matter, Intel did not comment on "fake situations or market speculation", but said that Intel 18A's main customers have always been Intel, with the goal of large-scale production of Panther Lake chips in the second half of the year and called it the first-class processor designed and manufactured in the United States.
In addition, despite the possibility of stopping the promotion of Intel 18A to new customers in the future, Intel will continue to produce Intel 18A chips that have already been committed to customers, such as producing a small amount of chips for Amazon and Microsoft. At the same time, Intel's internally designed chips will continue to use Intel 18A. Amazon and Micron have not commented on this yet, and Intel said it will fulfill its commitments to customers.
When facing the dilemma of Intel 18A, Chen Liwu proposed a preliminary solution to focus more resources on purchasing the new generation of Intel 14A, because Intel hopes to achieve advantages for NTEM in Intel 14A. This approach is also to compete for important customers such as Apple and NVIDIA. These companies are currently using NTD to make their chips. Intel said they are developing the Intel 14A for key customers to ensure success. If Intel adopts Chen Liwu's proposal, the company will focus the Intel 14A process on its Intel 14A, hoping to have a better chance to compete with NTI.
But launching Intel 14A on time and getting major orders is not easy. There are also uncertainties in this strategic transformation, and Intel may eventually choose to adhere to its existing Intel 18A plan. The reason is that the complexity of this decision and the amount of money involved will make it impossible for the board of directors to make a decision immediately, or may have to wait for a while to achieve results.
In addition to adjusting the strategy of the crystal OEM business, Chen Liwu's overall strategy also includes updating the leadership team, introducing new engineering talents, and simplifying the mid-level management he believes is bloated and inefficient. However, stopping the promotion of Intel 18A to customers will remain one of his biggest moves since he took office. However, Chen Liwu's view of Intel 18A is based on his extensive population and customer relationships accumulated in chip industry for decades, which shows that his decisions are not vague imagination, but based on a deep understanding of the market and customer needs.
