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Success Knocks | The Business Magazine > Blog > Technology > Intel’s New CEO Eyes Major Overhaul in Chip Manufacturing Strategy
Technology

Intel’s New CEO Eyes Major Overhaul in Chip Manufacturing Strategy

Last updated: 2025/07/02 at 8:47 AM
Lisa Camara Published
Intel chip
Intel's CEO Lip-Bu Tan speaks at the company's Annual Manufacturing Technology Conference in San Jose, California, U.S. April 29, 2025.

Intel chip manufacturing

In a bold move, new Intel CEO Lip-Bu Tan is stirring the pot with a potential overhaul of the company’s chip-making strategy. This bold move could steer Intel away from the path set by former CEO Pat Gelsinger, sparking excitement and curiosity across the tech universe. What’s behind this potential pivot, and what could it mean for Intel’s future? Let’s dive in.

Contents
Intel chip manufacturingThe Proposed ChangeWhy the Shift?Focus on Future TechnologiesFinancial ImplicationsIntel’s ResponseThe Bigger PictureWhat This Means for the IndustryConclusion

The Proposed Change

Word on the street—sourced from insiders—suggests Tan is mulling over a decision to stop marketing some of Intel’s cutting-edge chipmaking tech to outside customers. This would hit the company’s “foundry” business, a cornerstone of Gelsinger’s vision to take on heavyweights like TSMC by producing chips for other firms. If Tan pulls the trigger, it’s a game-changer.


Why the Shift?

Pulling back from selling advanced processes like 18A and 18A-P isn’t a small decision. Intel has poured billions into perfecting these technologies, and scrapping external sales could mean swallowing hefty financial write-offs. So why do it? Tan seems to be betting on keeping the best tech in-house while pivoting toward areas where Intel can outshine the competition. It’s a high-stakes gamble with big potential rewards.


Focus on Future Technologies

Tan’s eyes are reportedly set on the next big thing: the 14A chipmaking process. Industry whispers hint that Intel sees this as its ticket to leapfrog rivals like TSMC. Could this be the key to wooing giants like Apple or Nvidia—currently TSMC loyalists—over to Intel’s side? If Tan’s vision pans out, it might just rewrite the rules of the chipmaking game.


Financial Implications

Let’s talk numbers. Analysts are buzzing about the cost of this shift, with estimates ranging from hundreds of millions to billions in write-offs for ditching external 18A sales. For a company already wrestling with financial hurdles, this isn’t pocket change. But if Tan’s strategy strengthens Intel’s long-term position, it could be a price worth paying.


Intel’s Response

Intel isn’t spilling the beans just yet. The company brushed off questions with a cool, “We don’t comment on hypothetical scenarios or market speculation.” Still, they dropped a hint: the 18A process was always meant to power their products first, like the upcoming “Panther Lake” laptop chips slated for late 2025. So far, Intel’s keeping details tightly under wraps.


The Bigger Picture

This isn’t just about Intel tweaking its business model—it’s about survival in a cutthroat industry. After years of tech delays and fierce competition, Intel’s been on the ropes. Tan’s potential pivot could be the spark they need to reclaim their spot at the top of the semiconductor food chain. The stakes couldn’t be higher.


What This Means for the Industry

If Intel doubles down on this shift, the ripples could hit far and wide. A stronger in-house focus might make their foundry less appealing to outside clients in the short term, but a breakthrough with 14A could flip the script. Imagine a world where Intel steals TSMC’s thunder—tech fans and investors alike are on the edge of their seats.


Conclusion

As Lip-Bu Tan steers Intel into uncharted waters, all eyes are on what comes next. This isn’t just a corporate shuffle; it’s a potential turning point that could reshape Intel’s destiny and shake up the semiconductor world. Stay tuned—the next few months might just define the future of tech as we know it.


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TAGGED: #chipmanufacturing, #Intel, #LipBuTan, #SemiconductorIndustry, #TechnologyNews, #TSMC, businessstrategy, successknocks
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