Intel CEO Lip-Bu Tan sends message to TSMC: ‘Our 14A process is a major, major …'
Intel CEO Lip-Bu Tan announced the company’s 14A chip manufacturing process will launch simultaneously with TSMC’s equivalent, marking a major breakthrough in Intel’s foundry strategy. Intel’s improved 18A process yields and partnerships with tech giants, including a potential deal with Apple, threaten TSMC’s dominance in advanced chip production.
Intel CEO Lip-Bu Tan declared the company’s foundry strategy is succeeding, positioning it as a direct competitor to Taiwan Semiconductor Manufacturing Company (TSMC). Intel’s upcoming 14A manufacturing process will debut at the same time as TSMC’s next-generation technology, a breakthrough Tan called ‘major, major.’ The move marks a shift from Intel’s historical focus on producing its own chips to manufacturing for external clients, aiming to reclaim advanced chip production from Asia. A key milestone was stabilizing Intel’s current 18A process, which Tan admitted was ‘not good’ upon his arrival. Yields, or the percentage of usable chips from each wafer, have improved by 7% to 8% monthly, a critical factor for profitability. This efficiency gain has drawn attention in Silicon Valley, with reports suggesting Intel has secured a preliminary deal with Apple to produce its next-generation chips, potentially displacing TSMC as Apple’s exclusive silicon manufacturer. Tan confirmed multiple tech firms are engaging with Intel, though he avoided naming Apple directly. The company expects to announce formal corporate commitments in the second half of 2024. Intel’s foundry business, the most expensive and crucial part of its comeback plan, now aims to attract major clients while challenging TSMC’s long-held dominance in advanced semiconductor manufacturing.
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