Report: Is Intel’s CEO exploring major shift in chip manufacturing business?
According to this new plan, outside customers would be offered a newer generation of technology, which is expected to be more competitive against Taiwan’s TSMC in Intel’s attempt to woo customers like Apple or Nvidia, the Reuters report said.
Intel’s chief executive Lip-Bu Tan is said to be exploring a significant change to its contract manufacturing business. The new strategy for the US chipmaker’s foundry business is aimed at winning major customers and may be an expensive shift from Intel’s earlier plans, sources told Reuters.
According to this new plan, outside customers would be offered a newer generation of technology, which is expected to be more competitive against Taiwan’s TSMC in Intel’s attempt to woo customers like Apple or Nvidia, the report said.
Tan, who became CEO in March, has tried to cut costs and revive the struggling chipmaker.
Recently, he has spoken about a manufacturing process known as 18 A, in which his predecessor had heavily invested, but which, according to Tan, no longer holds much appeal to customers, sources told Reuters.
However, putting aside external sales of 18A and its variant would ultimately cost Intel hundreds of millions of dollars.
Tan wants to instead concentrate resources on the next-gen chipmaking process called 14A to become competitive against TSMC, the Reuters report said, citing sources.