Intel mulls changes to chip-making biz: potential write-off of Intel 18A would cost billions

Here we go, again: Intel's new CEO Lip-Bu Tan is considering massive changes for its semiconductor foundry arm, Intel Foundry, in order to win major customers... with its in-house Intel 18A process node on the chopping block.

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In a new report from Reuters, we're hearing that Intel Foundry would no longer market particular chipmaking technologies, which the company has spent billions of dollars developing, to external customers. Lip-Bu Tan assumed the role of Intel CEO back in March 2025, quickly cutting costs and looking for new ways for Intel to be relevant again.

In June 2025, the new CEO started voicing that a manufacturing process that former CEO Pat Gelsinger bet heavily on -- Intel 18A -- was losing its appeal to new customers, according to Reuters' sources who spoke on the condition of anonymity.

If the reports are true, Intel is shelving external sales of its 18A and 18A-P process nodes, which cost the company billions of dollars to develop. Intel would be facing a write-off that would cost (at a minimum) hundreds of millions of dollars, but more likely into the billions of dollars, according to Reuters' sources.

Intel has declined to comment on "hypothetical scenarios or market speculation" adding that the lead customer for its in-house 18A process node has been itself, and that it plans to ramp production of its next-gen Panther Lake CPUs for laptops later in 2025, which it is calling the most advanced processors ever designed and manufactured in the United States.

Intel 18A has faced multiple hurdles and delays, but convincing outside tech companies to use Intel Foundry for their chips is the future. TSMC has its next-gen 2nm process node (N2) coming soon, and on track for production, while Intel is lagging behind massively in the semiconductor field.

In a statement, Intel said: "Lip-Bu and the executive team are committed to strengthening our roadmap, building trust with our customers, and improving our financial position for the future. We have identified clear areas of focus and will take actions needed to turn the business around".