The Intel CEO’s foundry strategy is now front and center under the guidance of Lip‑Bu Tan, who stepped in as Intel’s CEO in March 2025. From day one, Tan has signaled he’s ready to reshape Intel’s contract manufacturing business. Intel has suffered high-profile missteps in its foundry ambitions, and now Tan hopes to recalibrate, sparking a bold reset in its new CEO chip shift strategy.
Tan’s vision? Focus resources on finishing an advanced “14A” process node, which he believes can outperform the delayed and over-budget “18A” node. By halting 18A external marketing, he’s ushering in a historic intel manufacturing change, even though it may lead to write-offs in the hundreds of millions.
From 18A to 14A: Why the Pivot?
Under Tan, the Intel CEO’s big shift centers on realigning Intel’s foundry roadmap. The predecessor, Pat Gelsinger, poured billions into the flagship 18A node, but market interest dimmed as TSMC’s N3 technology gained ground. Analysts now argue that 18A barely competes in.
By shifting focus to 14A, Intel is betting on a node with tighter margins and superior yield potential. It means writing off 18A for outside clients, but internal products like Panther Lake and cloud‑server partnerships with Amazon and Microsoft will stay on track. This decisive intel foundry plans move sends a message: Intel is ready to compete head‑on with TSMC and woo big clients like Apple and Nvidia.
Reorganizing for Foundry Success
Tan’s pivot goes beyond manufacturing nodes. He’s carried out sweeping leadership reshuffles, cost cuts, and management pruning to sharpen Intel’s edge. More agile teams, fewer middle‑management layers, and a renewed emphasis on operational discipline are key components of this broader intel manufacturing change.
Simultaneously, Intel is scaling investments in 14A development, hoping for an early edge over TSMC. Sources say risk production for 14A could begin in late 2026, with major production on the horizon.
Risks, Rewards, and the Road Ahead
This Intel new CEO chip shift is fraught with risk. Analysts warn of substantial financial downsides from abandoning 18A. Intel’s stock dropped after Reuters reported the strategy, reflecting short‑term investor jitters about manufacturing.
Yet, the potential upside is compelling: a competitive 14A node could attract large-scale customers, boost margins, and redefine Intel’s foundry credibility.
Intel also continues key 18A investments for internal product leadership. Panther Lake chips will roll out in H2 2025 and form the baseline for contract manufacturing credibility.
Foundry Ambitions: From Vision to Client Wins
Customer traction is already visible. Internal sources claim Intel Foundry Services has engaged ~12 active external customers with early 18A tape-outs. Further deals with AWS and Microsoft for AI fabric chips under Intel’s recent roadmap indicate growing inroads. Partnerships under the U.S. CHIPS Act and other foundry-centric initiatives also highlight broader momentum.
Still, skeptics note the need for yield improvements and production scale to truly break into the market. Intel researchers must deliver competitive cost/performance metrics by 2026–2027.
Final Word: A Calculated Gamble
Intel’s CEO foundry pivot is more than a roadmap tweak; it’s a complete strategic reset. Tan’s decision to leave 18A for internal use and pivot toward 14A shows both boldness and realism. Flattening management and cutting costs may patch structural inefficiencies, but Intel must prove it can execute on ambitious new-foundry goals.
Looking ahead, external client wins and 14A’s success will determine whether Tan’s gamble revitalizes Intel’s foundry dreams or sinks under competitor pressure. The stakes are high, and as Intel embarks on this new wafer warfare, all eyes will be on production milestones and incoming customer deals.
