In a significant move, Intel has decided to abandon its 20A node for desktop processors, opting to shift resources towards its smaller 18A node instead. The 20A node was initially envisioned as the foundation for Intel’s upcoming Arrow Lake CPUs, but the company has announced that it will now rely on “external partners” to manufacture these chips, with TSMC being the likely choice.
This shift to 18A comes at a time when Intel is facing a challenging period. Last month, the company announced layoffs affecting 15% of its workforce, followed by a dismal earnings call that revealed historic revenue drops and subsequent lawsuits from investors. Additionally, Intel’s manufacturing division has been plagued with issues, including failed wafer tests for Broadcom, as reported by Reuters.
Despite these internal struggles, Intel is maintaining its focus on its foundry business, which has emerged as a key area of growth. The company was instrumental in the passage of the 2022 Chips and Science Act, which could potentially provide Intel with up to $20 billion to expand its domestic chip manufacturing capabilities. However, Intel has expressed frustration over delays in receiving these funds from the government, according to Bloomberg.
Despite these challenges, Intel has secured several critical clients for its foundry business, including Microsoft and the U.S. Department of Defense, both of whom have committed to producing chips using Intel’s 18A node. These significant contracts may have influenced Intel’s decision to shift resources towards the 18A node, particularly as the company seeks to improve its financial stability.
Intel’s vice president of technology development, Ben Sell, has stated that the development of 18A has benefited from the groundwork laid by the 20A node. “The journey to Intel 18A has been built on the groundwork laid by Intel 20A. It enabled us to explore and refine new techniques, materials and transistor architectures that are crucial for advancing Moore’s Law,” Sell explained. “Focusing resources on Intel 18A also helps us optimize our engineering investments.”
Despite the setback with the 20A node, Intel has recently unveiled its Lunar Lake CPUs, which are expected to be available in laptops later this month. The company’s focus on its foundry business and the securing of major contracts for the 18A node suggest that Intel remains committed to its long-term vision for technological advancement, albeit with a revised strategy in response to its current challenges.
