Intel's Interim co-CEOs Outline Bold Future Plans: Business Restructure, 18A Process, and AI Strategy

Intel’s interim co-CEOs Michelle Johnston Holthaus and David Zinsner have given a detailed vision for the company’s future during the Barclays technology conference in San Francisco. Following the departure of former CEO Pat Gelsinger, the duo outlined significant updates on Intel’s Foundry Services (IFS), the 18A process, AI market ambitions, and their strategy for staying competitive in a challenging semiconductor landscape.

Intel Foundry Services Restructuring and Future

One of the pivotal announcements is the ongoing restructuring of Intel Foundry Services (IFS), including the formation of a separate operational board. This move is seen as a step towards splitting IFS into a standalone entity, allowing it to function with greater independence and focus.

Intel is also positioning IFS to attract major clients, potentially even rivals like AMD. This aligns with Intel’s ambition to become a premier custom chip manufacturer while simultaneously improving internal product pipelines.

18A Process Progress and Panther Lake SoCs

Holthaus addressed rumors surrounding the next-generation 18A process node, emphasizing its health and readiness. Intel’s upcoming Panther Lake SoCs, slated for 2025, will debut the 18A process. Engineering samples ("ES0") have already been sent to eight partners, and the results are promising.

“Panther Lake will land on 18A... We have eight customers that have powered on, giving you an idea of the health of the silicon and Foundry.”
– Michelle Johnston Holthaus

Intel’s willingness to be "customer zero" for its foundry is a testament to its confidence in the process, despite past skepticism.

Hybrid Outsourcing Model and TSMC Collaboration

Intel’s outsourcing strategy remains a crucial part of its business model. Holthaus acknowledged the importance of external foundries like TSMC in complementing Intel’s manufacturing capabilities.

“TSMC has been a fantastic partner. They’re the benchmark for what's expected in the industry.”
– Michelle Johnston Holthaus

This "hybrid sourcing" approach allows Intel to achieve competitive pricing and delivery timelines, a necessary adaptation in the face of IFS’s ongoing optimization efforts.

AI Market Ambitions

While Intel’s Gaudi AI chips face adoption hurdles, the company aims to reclaim its footing in the AI market. Holthaus admitted AMD is currently outperforming Intel in this sector but expressed confidence in Intel’s roadmap, citing Falcon Shores as a key launch to stabilize data center losses and create scalable AI solutions.

“2024 will be our stabilization year, and Falcon Shores will position us to regain momentum in AI.”

Despite recent challenges, Intel’s leadership remains optimistic. By restructuring IFS, advancing the 18A process, embracing hybrid outsourcing, and refining its AI strategy, Intel is laying the groundwork for a more competitive and innovative future.

What do you think about Intel’s plans for the 18A process and its restructuring strategy? Can Intel regain its edge in the AI market? Share your thoughts below!