Intel, a giant in the semiconductor industry, is currently facing a pivotal decision regarding its future manufacturing technology, specifically its 18A and 14A process nodes. This critical juncture comes as the company’s contract manufacturing business, known as Intel Foundry Services, is under intense scrutiny from industry observers.
Former CEO Pat Gelsinger had invested billions into this foundry business with an ambitious goal: to directly compete with industry leader TSMC. The 18A process node was a cornerstone of this aggressive plan, representing Intel’s cutting-edge manufacturing technology.
However, recent reports suggest a potential shift in strategy. There’s growing speculation that Intel might pivot its primary focus towards the 14A process node. This 14A node is reportedly being developed in much closer collaboration with external customers, a level of partnership that has been notably absent for the 18A node. This emphasis on external customer engagement is crucial, as the success of a foundry business hinges on attracting and retaining clients beyond its own chip production.
The stakes are high. There’s even a possibility that Intel could abandon its fab (fabrication) business entirely if it fails to secure sufficient external customers. Such a move would result in a massive financial write-down and significantly increase Intel’s dependence on TSMC for manufacturing its chips. This radical, customer-centric approach aligns with the vision of current CEO Lip-Bu Tan for the foundry business.
Beyond these critical process node decisions, Intel is undergoing a significant internal transformation. The company is restructuring to become a more agile and efficient organization. This includes a substantial 15% staff reduction, aiming to reduce its workforce to 75,000 by the end of the year, as part of a larger $10 billion cost reduction plan. While these job cuts have led to considerable restructuring costs, they are viewed as necessary steps to improve operational efficiency and foster a cultural change within the company.
Despite these formidable challenges, there are glimmers of progress. Intel’s foundry business did exceed revenue expectations in Q2 2025, although most of this revenue still originates from manufacturing Intel’s own chips. The company also saw a rebound in its server chip revenue, and its products business, which includes PC and server chips, surpassed expectations. Nevertheless, Intel continues to navigate headwinds in the broader PC market and is actively working to revitalize its AI strategy while divesting non-core assets. The overall sentiment is that while Intel is making strides, it still has a considerable journey ahead to achieve a full recovery and solidify its position in the competitive semiconductor landscape.
Is your industrial computing project facing its own crossroads?
Just as Intel navigates complex technological decisions, your industrial operations demand computing solutions that are at the forefront of performance, reliability, and safety. If you’re looking for partners who understand cutting-edge processors, extreme environmental demands, and the critical importance of HazLoc certification, Acura Embedded Systems can help.
If you have an industrial computing project that requires robust, high-performance, or HazLoc-certified solutions, contact Acura Embedded Systems today. Let us help you engineer the future of your operations.