Intel’s new CEO, Lip-Bu Tan, is making waves with bold changes to the company’s foundry division. The latest move: Intel is reportedly canceling its glass substrate project, which has been in development for years, in favor of outsourcing the technology to external customers. This decision aligns with Tan’s promise of restructuring and refocusing the company’s resources on more vital areas like CPUs and manufacturing.
The glass substrate technology, once considered a major innovation by Intel, was expected to help the company maintain a competitive edge in the semiconductor industry.
However, Intel has struggled to meet expectations with its foundry division, particularly with delays in its 18A process. These delays, combined with inconsistent results, have led to the decision to limit Intel’s semiconductor business activities, with a sharp focus on cost reduction.
Although Intel has a lead in glass substrate development, with years of experience in the field, the company now believes that external sourcing is the better route. This would allow Intel to save on operational costs while still capitalizing on the market potential for glass substrates. The firm has been reevaluating its priorities, which includes scrapping the external sales of the 18A process in favor of using it exclusively in its internal products, like Panther Lake and Clearwater Forest.
Despite the setbacks, Intel is not backing down from its ambitions. While its 18A process may not see widespread adoption in the market, Intel’s future prospects rest on the 14A node, where it hopes to compete with TSMC. However, to make this a reality, Intel will need massive external demand to justify the scale needed for the 14A process to be commercially viable.
The road ahead for Intel’s foundry business remains uncertain. The company has yet to provide a clear update on its plans, but one thing is clear: the decisions under CEO Lip-Bu Tan will shape the future of the semiconductor giant in significant ways.
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