Intel's 18A Manufacturing Process Faces Uncertain Future

Intel is reportedly reconsidering the marketing strategy for its upcoming 18A manufacturing process, which has not yet entered mass production. According to sources, the company's CEO, Lip-Bu Tan, has expressed concerns internally that the appeal of the 18A process may be diminishing among potential clients.

The 18A process is significant for Intel as it was expected to be the first manufacturing technology to generate substantial revenue from external customers. However, there are indications that Intel might halt customer acquisition efforts for this process, as highlighted by a report from Reuters.

Previous plans for the 18A process, which include the development of new processors, are still expected to proceed as scheduled. Nevertheless, Intel might need to write off portions of the associated manufacturing technology, which could result in book losses ranging from hundreds of millions to potentially billions of dollars.

In 2024, Intel had already quietly discontinued its 20A process, claiming that the 18A technology was in a better position than anticipated. The lessons learned from the 20A process were slated to inform the final stages of the 18A development.

Despite the uncertainty surrounding the 18A process, some products are still on track. Intel plans to launch its Panther Lake notebook processors, known as Core Ultra 300, in early 2026. Server models, including Clearwater Forest, are also expected to be released in the coming year. Additionally, Intel is set to manufacture a limited number of AI chips utilizing the 18A technology for major clients such as Amazon and Microsoft.

However, the anticipated demand for the 18A process may not materialize as initially expected. CEO Lip-Bu Tan is well-connected in the semiconductor industry, and negative feedback from within the market could indicate a lack of interest from potential customers.

Looking ahead, Intel may shift its focus to the next generation of manufacturing technology. The 14A process is expected to offer significant improvements but will not be ready for production until at least 2027. In the interim, competition in the semiconductor market is expected to intensify, with rivals such as TSMC and Samsung making strides in their own manufacturing technologies, including Samsung's emerging 2-nanometer process.