[Chip Talk] Will Intel Break the Immutable Law and Revive the Semiconductor Empire?

Two Months Since Lip-Burned Tan Took Office
Draws a Line on TSMC Joint Venture and Spin-off Rumors
Strongly Asserts Commitment to Foundry Success
Aggressive Sales to Realize 18A Chip Production
Differentiation Through Advanced Packaging Technology
Signs Large-Scale Foundry Deal with Microsoft
Full-Scale Mass Production of Panther Lake CPU in the Second Half of the Year

"Once a big tech company falls, it can never rise again."

According to sources in the semiconductor industry on May 17, there is an almost superstitious "immutable law" among big tech companies. This phrase highlights the reality that, more than in any other field, it is extremely difficult for big tech firms to rebuild once their carefully constructed towers collapse. Big tech operates in a market where success depends on technology. The pace of technological advancement is faster than anything else. Only by leading or keeping up with technological trends can a company survive in this fiercely competitive world. If a company falls behind even once, it inevitably becomes obsolete and disappears.

Will Intel be different? The industry is watching to see if Intel can become the first company ever to break this immutable law and reclaim its position at the top. If Intel does make a comeback, the driving force is expected to be a "change in leadership." On May 18, it will be exactly two months since CEO Lip-Burned Tan took office at Intel. If the past two months have been a period of recognizing the company atmosphere and identifying problems?an "exploratory phase"?now is the time to set a clear direction for reform.

There are also predictions that Intel will enter a turning point with the inauguration of U.S. President Donald Trump, who is willing to take any measures to revive domestic companies. In February, in response to requests from the Trump administration, there was speculation about a possible joint venture in which TSMC, the world's number one foundry (semiconductor contract manufacturing) from Taiwan, would acquire a controlling stake in an Intel plant. However, Intel rejected such suggestions, expressing its determination to revive its foundry business on its own. The company also dismissed rumors of a foundry spin-off. At the "Intel Foundry Direct 2025" event held last month at the San Jose Convention Center in the United States, CEO Tan said, "Many people have asked whether we will continue the foundry business," adding, "My answer was 'Yes'." He continued, "I am here to say that I will make Intel Foundry a success," and called on attending partner companies to "give brutally honest feedback."

A Calculated Move with the 1.8-Nanometer Process

It is reported that Intel has recently launched aggressive sales efforts to win back lost customers. The company has put its "18A" process technology?at the 1.8-nanometer (nm, 1 nm = one hundred-millionth of a meter) level?at the forefront. This is seen as a decision that is neither too aggressive nor too cautious. The 18A process was a technology Intel announced in 2022 that it would develop and release. However, due to various trial-and-error experiences, progress had stalled. After his appointment, CEO Tan, who was searching for a breakthrough, decided that it was right to first focus on completing the tasks already underway. He chose to realize chip production with the 18A process and then move on to the next stage based on that foundation.

The 18A process allows for the production of chips that are even more precise than those made with the 2-nanometer process. In the industry, the difference is so slight that the 18A process is often treated as equivalent to the 2-nanometer process. However, Intel reportedly plans to further improve its proficiency with the 1.8-nanometer process and add advanced packaging technology to differentiate itself. There are already reports that foundry customers seeking to use Intel's 18A process are emerging. Recently, it was reported locally that Intel signed a large-scale foundry contract with Microsoft (MS). There are also expectations that contracts with Nvidia, Google, and Broadcom will soon be finalized.

In the second half of this year, Intel plans to launch the "Panther Lake" central processing unit (CPU), manufactured using the 18A process, to begin mass production in earnest. Next year, the company intends to introduce the "18A-P" process, which improves power efficiency, and then in 2027, to adopt the "14A" process at the 1.4-nanometer level. The 1.4-nanometer process is considered the most advanced chip manufacturing process in the industry. If Intel succeeds in producing chips with this process, competition in the foundry market?which has been quiet due to TSMC's dominance?will likely heat up again. TSMC has announced plans to achieve the 1.4-nanometer process starting in 2028, while Samsung Electronics is also targeting mass production in 2027.

Lip-burned Intel CEO. Photo by Intel

Engineer-Centered Personnel Reform: "The New Intel"

Since taking office, CEO Tan has focused not only on restoring technological capabilities but also on overhauling personnel. It is reported that a large number of executives and staff who lacked competence and engaged only in theoretical discussions have been replaced. Key positions have been entrusted to engineers. Through this, his vision is to create a completely "new Intel." At the "Intel Vision" event held in Las Vegas on March 31, CEO Tan said, "Intel will now become an engineering company." He went on to emphasize, "Intel has lost many talented engineers over the years," and added, "It is necessary to hire outstanding engineers and retain current talent."

Last month, he also sent an email to employees announcing plans for restructuring, including workforce reductions and changes to work arrangements. The current hybrid policy, which recommends three days in the office per week, will be changed to four days starting in September, and unnecessary meetings will be eliminated, according to concrete plans. CEO Tan said, "The current internal structure breeds unnecessary bureaucracy," adding, "We must remove organizational complexity and return to our roots."