Intel has revealed that it may halt or cancel the development of its 14A process node (1.4 nm class) and future technologies if it fails to secure a major external client or meet specific financial targets.
Shift in Intel’s Strategy
This statement marks a significant shift in the company’s strategy. Intel is now focusing more on the financial viability and return on investment of its products, rather than advancing technology for its own sake.
In a recent report, Intel made it clear that if it cannot secure a substantial volume of orders from an external client and meet certain key metrics, continuing with the 14A node and its successors would not be profitable. This raises concerns about Intel’s future as a leading chip manufacturer.
High Costs Demand High Demand
The 14A node is expected to follow the current 18A and 18A-P nodes and would include advanced technologies like High-NA EUV lithography. Each of these tools can cost up to $380 million. Even a small number of machines would require investments exceeding $700 million, making strong demand essential before committing resources.
The interim CEO of Intel’s foundry division has stated that such investments will only proceed if there is guaranteed production volume from both internal and external clients, along with strong proof of performance and productivity. Without these, Intel risks repeating past mistakes, such as those encountered with the 18A node.
If Intel chooses not to proceed with the 14A node, it will have to rely on external manufacturers like the well-known TSMC and Samsung to produce cutting-edge chips. This could further strengthen the leadership of these competitors in the market. Although Intel plans to continue producing chips on the 18A-P node until at least 2030, canceling the 14A development would be a key turning point for the company’s future role in the industry.
Following the announcement, Intel’s stock fell, as there is no certainty that the 14A node will attract the needed clients to be profitable.
