Intel’s 18A Tech Push in Jeopardy: Delays Force Strategic Retreat from External Partnerships

Intel hits pause on its ambitious 18A expansion—delays and internal recalibrations torpedo plans to license cutting-edge tech to rivals.

Behind the backtrack: Foundry ambitions clash with execution realities as the chip giant prioritizes internal roadmap over external deals.

Wall Street shrugs—another 'strategic pivot' from the company that turned semiconductor dominance into a turnaround project. When do the real comebacks start?

TLDRs;

• Intel is considering pulling back its 18A chip process from external clients due to delays and performance concerns.
• CEO Lip-Bu Tan plans to refocus efforts on the more advanced 14A process to better compete with TSMC.
• Analysts warn that shelving external 18A efforts could lead to massive financial losses.
• Intel will still honor existing 18A commitments to Amazon and Microsoft while its board reviews the new strategy.

Intel is reportedly on the verge of a major strategic shift under its new CEO, Lip-Bu Tan, who took the helm in March 2025.

According to sources familiar with internal discussions, the company is re-evaluating the external rollout of its highly anticipated 18A chipmaking process, citing delays and competitive pressures. Instead, Tan is leaning toward prioritizing the company’s next-generation 14A process, potentially marking a significant course correction in Intel’s foundry ambitions.

If implemented, the decision would represent a retreat from Intel’s earlier plans to aggressively market 18A to external clients. Rather than pushing the technology as a solution for partners like Apple or Nvidia, Intel may now reserve it primarily for its own use. The proposed change comes amid concerns over the 18A process falling behind schedule and struggling to meet performance expectations compared to TSMC’s more mature offerings.

14A Gains Spotlight as Competitive Focal Point

At the heart of Tan’s strategy is an emphasis on 14A, Intel’s next major manufacturing node. Tan reportedly views 14A as a more promising contender against TSMC’s N2 process, which currently dominates the market in terms of performance and energy efficiency.

Intel hopes that by shifting resources away from the beleaguered 18A line and investing more heavily in 14A, it can better position itself to reclaim relevance in the global chip race.

TSMC’s lead is substantial. With a commanding 64.9 percent market share in Q3 2024 and a track record of reliable customer service, the Taiwanese giant remains the benchmark in contract chip manufacturing. In contrast, Intel’s foundry revenue barely scratches the surface of the market, reflecting its ongoing struggle to adapt from a vertically integrated model to a service-oriented business.

Financial and Cultural Hurdles Could Complicate Pivot

The potential shift away from external 18A deployments is not without cost. Analysts warn that the move could result in losses ranging from hundreds of millions to several billion dollars, especially given the investments already sunk into the technology and its marketing. While Intel insists it will meet its existing obligations to clients like Amazon and Microsoft, internal-only use of 18A would undercut its broader foundry ambitions.

Beyond the financial hit, Intel faces deeper challenges in transforming its company culture to support a contract manufacturing model. Traditionally known for its rigid “copy exact” approach to internal chip production, Intel is now working to adopt more flexible practices suitable for third-party customers with diverse needs. This cultural shift is seen as vital to attracting and retaining major clients in a hyper-competitive environment.

Board Review Looms as Intel Weighs Foundry Future

The final decision on Tan’s proposal now rests with Intel’s board of directors, who are expected to review the strategy in the coming weeks. The stakes are high, as the outcome could determine whether Intel reclaims relevance in the global chip landscape or falls further behind in its second major attempt at foundry success.

Despite past setbacks, Intel’s leadership remains committed to evolving the company into a serious player in the foundry space. Whether the shift to 14A proves to be a masterstroke or another misstep will depend on execution, timing, and Intel’s ability to build the ecosystem needed to support its ambitions.