Intel's foundry unit is expected to undergo dramatic changes under new CEO Lip-Bu Tan, with one major change being a decision to abandon its pursuit of cutting-edge chips. Intel recently announced its second quarter financial report. Judging from the current situation, Intel's situation is not optimistic. The company is currently operating at an operating loss, and despite massive layoffs, it will take time to get back on track.
The new CEO seems to intend to make fundamental changes to Intel's business strategy, and the foundry unit will be one of the bigger hits.
According to the company's 10-Q report,If external shipments of upcoming nodes like 18A or 14A are not high, Intel will not hesitate to exit the race for cutting-edge nodes.
Intel is uncertain about the future of its foundry unit for two main reasons. First of all, the current competition in the chip field is too "one-sided", with TSMC occupying all the focus. Although Intel's 18A process has made good progress, the market is also leaning towards cooperation with the Taiwanese giant, which has brought uncertainty to Intel. What's more, billions of dollars have been invested in IFS, but it has yet to achieve a breakthrough that could turn around the momentum of the business. The following is Intel’s specific statement on the future development of its foundry business:
However, if we are unable to acquire significant external customers and achieve significant customer milestones for Intel 14A chips, we face the prospect that it will no longer be economical to continue developing and producing Intel 14A and its subsequent leading-edge nodes. In such event, we may suspend or terminate development of Intel 14A and its subsequent nodes and various manufacturing expansion projects.
A few weeks ago, we reported that Intel may abandon the 18A process if it fails to generate significant external demand. At present, it seems that Chen Liwu is ready to make a major decision. At present, it is said that the 18A process is more focused on in-house products such as Panther Lake and Clearwater Forest, while the future of the 14A process is increasingly bright.