On March 5, according to Reuters, Intel CFO David Zinsner said at a technology conference in San Francisco on Wednesday that company CEO Lip-Bu Tan is now beginning to consider the 18A process technology as a potential option for external customers. Last year, the technology was mostly reserved for Intel's internal use.
Chen Liwu
The comments may mark a reversal of an important part of the recovery strategy Mr. Chen laid out last year. At that time, Chen Liwu said that he believed Intel's 18A manufacturing process can only generate reasonable returns when used in Intel's own products. Chen Liwu’s predecessor, Pat Gelsinger, had invested heavily in craftsmanship.
"Although Chen Liwu once thought that we should probably focus on developing 14A as an OEM process technology, and let 18A really become an internal process technology, but now we have seen some substantial progress on 18A, I think he is beginning to realize that this is actually a good process that can be provided to external customers." Zinsner said at the Morgan Stanley Technology, Media and Telecommunications Conference on Wednesday.
Reuters previously reported that currently, only a small part of Intel's chips manufactured through the 18A process have reached a yield rate that can be provided to customers. Intel said its yield rate (the number of good chips per wafer) is improving every month. Low yields also often put pressure on profit margins.
Since becoming CEO, Chen Liwu has carried out drastic reforms at Intel. Last year, Intel cut about 20% of its workforce as he reshaped the company's strategy to address challenges in AI. Chen Liwu also vowed to continue operating Intel's factories and seek new customers for its next-generation manufacturing technology called 14A.
Intel shares rose about 6% on Wednesday, driven by broad gains in chip stocks.