Exclusive-Intel’s new CEO explores big shift in chip manufacturing business
By Max A. Cherney, Jeffrey Dastin and Stephen Nellis
San Francisco (Reuters) -tel’s new general manager, investigating a major change in the production production business to win large customers, two familiar with the issue, with a potentially expensive change from the plans of his predecessor.
If it is implemented, Intel’s “document” work, because the new strategy, the company has long developed specific fragmentation technology should not market to external customers, he said.
Since the company’s rudder in March, the CEO lip-this tan has moved quickly to reduce costs and find a new way to revive the US chipser manufacturer. Until June, the sources speaking on the condition of anonymity began to express a production process in which the previous CEO Pat Gelinger lost their attractiveness to new customers known as 18A.
He said that the company is one of the people he knows to develop the production processes that cost billions of dollars to put aside the 18a-P variance of 18a’s foreign sales and 18a-p variance. Industry analysts in contact with Reuters, such an accusation may mean a loss of hundreds of millions of dollars, although not billions.
Intel refused to comment on such “hypothetical scenarios or market speculation”. 18A has been the main customer for a long time, and in 2025, the “Panther Lake”, which was later designed and produced in the USA, is aimed to ramp the laptop chips.
To convince external customers to use Intel’s factories continues to be the key to their future. 18A manufacturing process as it encounters delays, the N2 technology of the competitor TSMC is on the road for production.
Tan’s preliminary response to this difficulty: More source, Intel, Taiwan’s TSMC expects to have advantages according to the focus on a new generation of chip -making process 14a, he said. Movement is a part of a game for big customers Apple And Nvidia is currently paying TSMC to produce its chips.
One of the two sources Tan, Tan, the company, at the beginning of this month, including whether to stop the marketing of 18a, at the beginning of this month when he met with discussion options. The Board may not decide the 18A until the next autumn meeting in the light of the issue and the enormous money in question.
Intel refused to comment on rumors. In a statement, he said: “This and the executive team are determined to strengthen our roadmap, to create confidence with our customers and to improve our financial position for the future. We have identified open focus areas and will take the necessary actions to reverse the business.”
It was the first profit of Intel last year since 1986. For 2024, he issued a clear loss that can be attributed to $ 18.8 billion.
The negotiations of the Intel CEO show tremendous risks and costs to bring the storey US chipset back to solid foundations. Like Gelinger, he inherited a company that has lost its production edge and has fallen into significant technology waves of the last twenty years: Mobile Information Processing and Artificial Intelligence.
The company aims to produce high volume for 18A later this year with its internal chips that are expected to come before external customer orders. Meanwhile, it is not certain to deliver 14A on time to earn large contracts, and he said he could choose to adhere to Intel’s current plans for 18a.
Intel adapts 14A to the needs of key customers to make it successful.
Amazon and Microsoft In 18a
TAN’s review of whether it will focus customers on 14A includes the contract disintegration section of Intel or Foundry, which makes chips for external customers.
Regardless of a board decision, Intel said he would make chips over 18a when his plans are already in action. This includes using 18A for In -company chips designed by Intel for this production process.
Intel will also produce a relatively small volume chip for Amazon.com and Microsoft over 18A, and with unrealistic deadline dates to wait for the development of 14a.
Amazon and Microsoft did not comment on this issue immediately. Intel said he would fulfill customer commitments.
Tan’s general strategy for Intel continues to be new. So far, he has updated the leadership team, brought new engineering ability, and worked to shrink what he was thinking about.
18a would represent one of the biggest moves so far to Foundry customers from selling.
18A production process includes a new method and a new type of transistor to provide energy to the chips. Intel executives, previously designed to allow these improvements to allow Intel to match or TSMC’s abilities.
However, according to some industrial analysts, the 18A process is roughly equivalent to N3 production technology, which is roughly produced by TSMC at the end of 2022.
If he follows Intel Tan’s leadership, the company will focus Foundry employees, design partners and new customers on 14A, hoping to be a better chance to compete against TSMC.
The two sources said that Tan has benefited from comprehensive contacts and customer relationships in the chipset industry to reach 18a’s opinion in 18a.
(Editing Jeffrey Dastin, Max A. Cherney and Stephen Nellis; Kenneth li and Matthew Lewis) in San Francisco)
