1 week ago
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Reuters
Wed, March 4, 2026 astatine 11:02 AM CST 2 min read
March 4 (Reuters) - Intel CEO Lip-Bu Tan is present starting to admit its 18A manufacturing exertion arsenic a imaginable offering for external clients aft relegating it mostly to interior usage past year, Chief Financial Officer David Zinsner said connected Wednesday during a tech league successful San Francisco.
This could people a reversal from a large facet of Tan's turnaround strategy acceptable retired past year, erstwhile helium said helium believes Intel's alleged 18A manufacturing process — successful which his predecessor Pat Gelsinger had profoundly invested — could make a tenable return lone if it is utilized for Intel's ain products.
Shares of the institution were up astir 6% amid a broader uptick crossed spot stocks.
"While Lip-Bu was ... reasoning that we astir apt should absorption connected 14A arsenic a foundry node and marque 18A truly conscionable an internal node, now that we've got seen immoderate real advancement there, I deliberation he's present starting to admit that this is really a bully node to connection to outer customers arsenic well," Zinsner said astatine the Morgan Stanley Technology, Media and Telecom league connected Wednesday.
Reuters has reported that lone a tiny percent of the chips printed via 18A person been good capable to marque disposable to customers. Intel has said its yields, oregon the number of bully chips per silicon wafer, are improving monthly. Weak yields besides routinely pressure margins.
Since his assignment arsenic CEO, Tan has made big changes to Intel. Last year, Intel chopped astir 20% of its workforce arsenic Tan reshaped the company's strategy to tackle artificial intelligence.
Tan has besides vowed to proceed to run Intel's factories and prosecute caller customers for its next-generation manufacturing tech called 14A.
(Reporting by Arsheeya Bajwa in Bengaluru; Editing by Alan Barona)
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