Chip manufacturer Intel Corporation is purportedly scrapping its 18A manufacturing process for external customers, suggests a new report from Reuters. Intel's former CEO Patrick Gelsigner had gone as far as to 'bet' the company's future on 18A and try to use the technology to catch up to Taiwan's TSMC in the chip manufacturing technology race. However, with the first half of 2025 over, the firm has shared few details about 18A, and it is now considering scrapping the process from its foundry business entirely, believe the sources who spoke with the publication.
Intel Declines To Comment On Whether It Is Scrapping 18A For External Customers
Regarding marketing terminology, Intel's 18A manufacturing process is the rough equivalent of TSMC's 2-nanometer or N2 technology node in some aspects but lags in others such as transistor density. TSMC's N2 is one of the latest manufacturing technologies in the world, and the firm is expected to enter mass production with the process later this year. In all likelihood, N2's first customer should be Apple, but whether the upcoming iPhone uses chips made with the technology is uncertain.
Intel's former CEO Patrick Gelsinger had long touted the 18A as the firm's attempt to catch up to TSMC in the semiconductor manufacturing technology race. However, a fresh report from Reuters suggests that Gelsinger's successor, Lip-Bu Tan, has purportedly decided to scrap 18A from Intel's foundry business. If true, the decision means that external customers who decide to use Intel to manufacture their products will be unable to use the 18A process technology.
According to the sources, Tan believes that the 18A manufacturing technology has become less attractive to Intel's customers for its foundry business. As a result, the firm might have to incur millions of dollars in write-off costs if it decides to scrap external sales of the technology. Intel declined to comment on the report, and if Tan does decide to skip external customers for the 18A technology, then Intel's bid to wrest the contract chip manufacturing crown from TSMC could face a setback.
However, the sources also suggest that Intel might aim at TSMC's market with the 14A manufacturing technology. The decision to stop external 18A sales isn't final and could be made later this year at board meetings. Additionally, even if Intel does decide to limit its 18A manufacturing, the firm will nevertheless fulfill some orders for Amazon and Microsoft.
Intel's statement responding to the report did not comment on whether the firm would scrap 18A for external customers. "Lip-Bu and the executive team are committed to strengthening our roadmap, building trust with our customers, and improving our financial position for the future," said the firm. "We have identified clear areas of focus and will take actions needed to turn the business around," it added.
Rumors circulating in the industry ahead of Tan's appointment had hinted that Intel might spin off its foundry business. However, the new CEO refrained from confirming them, and so far, he has not indicated any such intention. Yet, Intel's decision to rely on the 18A technology only for internal use could place the foundry business on the back burner.
About the author: Ramish is a seasoned technology writer and editor with more than a decade of experience. He specializes in semiconductor fabrication and market analysis. With a background in finance and supply chain management - via his bachelors in Finance and a micromasters in supply chain management from MIT - Ramish combines financial rigor with deep industry insight to deliver accurate and authoritative coverage.
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