Intel is currently facing challenges beyond its product line. Following the recent departure of its CEO reports from South Korean outlet Chosun indicate that Intel’s 18A production process is struggling, with silicon utilization rates reportedly below 10%. This has created significant obstacles for the company in ramping up mass production of chips using its advanced 1.8 nm lithography.
According to the report, the 18A process is falling short of delivering results comparable to TSMC’s 2 nm process, which is set to debut in 2025. The low yield has reportedly led Broadcom, a major U.S. semiconductor company, to cancel its orders with Intel Foundry Services.
These setbacks could have broader implications for Intel’s plans. The company may need to reevaluate or even delay the construction of new chip manufacturing facilities in the U.S. and Europe—projects that had been seen as central to its strategy for regaining leadership in semiconductor production.
US government subsidy has been reduced.
Reports from the South Korean website Chosun suggest that Intel’s struggles with its 18A process may have wider repercussions, including a potential reduction in subsidies from the U.S. government. These challenges are also rumored to have played a role in the recent departure of former CEO Pat Gelsinger.
Adding to the speculation, there are unconfirmed claims that the U.S. government has proposed a merger between Intel and its primary competitor, AMD. While this idea has not been officially addressed, it underscores the gravity of Intel’s current predicament.
What is certain, however, is the unease among Intel’s partners following Gelsinger’s sudden exit. Many executives see this leadership change as a sign of uncertainty about its strategic direction, further intensifying concerns about Intel’s ability to navigate its ongoing challenges.
