Intel's CEO considers major change in chip manufacturing
Intel's CEO Lip-Bu Tan is considering a big pivot for the company's chip-making business, which builds processors for tech giants like Microsoft and Amazon.
Since March, he's been weighing whether to stop pitching the expensive 18A chip process to new customers because of slow demand and delays.
Instead, Intel wants to focus on its 14A chips, which it believes can compete better with rivals like TSMC.
Intel has already spent billions developing the 18A tech
Intel has already spent billions developing the 18A tech, so dropping it for outside sales could mean writing off hundreds of millions.
Still, they'll keep making 18A chips for their own products and current deals.
The board will decide soon on next steps.
Intel still all-in on launching advanced 'Panther Lake' chips
Even with this shift, Intel says it's still all-in on launching its advanced "Panther Lake" chips in 2025.
Tan is cutting costs and shaking up management
Tan is cutting costs and shaking up management to make Intel more innovative and customer-focused.
After reporting its first annual loss since the '80s, he wants to rebuild trust, showing he has big plans beyond just making chips.