Intel’s foundry future depends on securing a customer for next-gen chipmaking tech

By Max A. Cherney and Stephen Nellis

San Francisco (Reuters) -tel warned investors that they may have to get out of the chip production business if investors do not produce chips in their factories.

The new CEO Lip-Tan said that on Thursday, the company’s engineers announced that they are busy working with customers to jump the new generation contract production process or documentary, as the company announced great dismissal with the third quarter loss appearance than expected.

For the company’s so-called 14A production process, customers are very important for the success of technology-so that if a large one does not guarantee, it can completely close the latest production business according to Intel’s three-month file on Thursday.

Intel’s probability of leaving the latest production business will be a historical change for a company that describes itself as an official of the Moore Law-an observation of the rapid development rate of the chip industry of the chip industry, which has been real for decades of Itel co-founder.

Intel is the only US chip manufacturer who can make advanced information chips.

Intel has fought for years because of the wrong steps, missed the AI race, and for a long time the rival AMD has lost its market share.

Former CEO Patrick Gelsinger, aiming to compete with the chip production giant TSMC, poured money into Intel’s Foundry business. Tan, who has already taken steps to correct the ship, said that he personally reviewed all chip designs and investments in a call on Thursday.

“We are developing Intel 14a … We are closely common with great external customers,” Tan said in a note published with results. “In the future, our investment in Intel 14A will withstand approved customer commitments.

He continued: “We will build what our customers need when they need it and we will consistently dig their confidence through execution.”

Intel, without an important customer, said that he would consider cancel or pause the development of 14A and subsequent technologies. According to the file, the company plans to continue to produce chips with 18A technology and a variant until 2030.

Tan at a conference meeting after a earnings said in a statement on Thursday that 14A focused on working with customers to ensure that it was successful, and that a strict cooperation with external customers is something that is not found in 18a that is not found for the company’s high -volume production later this year.

Tan said that bringing these potential customers and obtaining feedback during the development of 14a has already made it more promising than 18a.

Tan, “This time this time our customers () 14a’nın at the beginning of the early interaction enough confidence gave more confidence.” He said. “We learn from our mistakes and learn faster and get a better result.”

Filing, the results of the decision to stop internal production will be important for Intel, he said. This means that in time, Intel will be dependent on TSMC for Taiwan’s contract production or documentary services.

Doing this will make a competitive disadvantage for competitors such as AMD, who has longer relationships and working experience with TSMC.

Intel, as of June 28, had approximately 100 billion dollars of sawdust equipment. If the company stops the production line, the company’s file, the company expects “important financial disorders” about the casting assets.

(Reporting Max A. Cherney and Stephen Nellis in San Francisco; Additional reports by Arsheeya Bajwa in Bengaluru;