Intel reportedly considering major strategy change in manufacturers like Ohio plant ...Middle East

NEW ALBANY, Ohio (WCMH) -- Intel’s new CEO Lip-Bu Tan is reportedly considering a major change to Intel’s manufacturing division, including Ohio’s plant.

According to reports, Tan is debating a strategic change for Intel Foundry, the Intel division responsible for chip manufacturing and the $28 billion Intel Ohio One plant that is under construction. If implemented, Intel would no longer market a major service, 18A, to new external customers. Intel has indicated 18A will be used in Ohio's facilities.

Intel did not confirm the reports, instead choosing not to comment on "market rumors and speculation."

"As we have said previously, we are committed to strengthening our roadmap, delivering for our customers and improving our financial position for the future," an Intel spokesperson told NBC4.

Intel is primarily comprised of two main divisions: Intel Products and Intel Foundry. Products is in charge of marketing physical goods, and Foundry is in charge of the manufacturing of goods. Semiconductors are small and complex, so Intel Foundry explores methods of making them effectively. Ohio's plant, as a Foundry operation, plans to manufacture products made by both Intel and outside companies.

Reports say Intel is considering moving away from 18A, a process node that will be ready for mass production later this year. Intel said process nodes are like a "recipe and list of ingredients used in semiconductor manufacturing." Intel has been promoting 18A for some time, so cutting external customers would be a big shift in the company's Foundry strategy.

Instead, Intel would reportedly focus on 14A, which the company said is also being designed as a process node. Intel estimates 14A will be available in 2027, so ditching 18A would likely limit Intel from getting new external Foundry customers for nearly two years.

In Ohio, where construction has been delayed into 2031, it's unlikely the switch would have a direct effect, unless it is too costly and requires larger changes at Intel. Industry analysts predict the proposal would be a financially risky decision, as the company has invested billions in 18A. Analysts said the company would likely need to take a write-off if it moves forward with this proposal, costing Intel hundreds of millions or billions of dollars.

Removing 18A for external customers would still leave one major customer for the Foundry: Intel Products. Intel is the largest customer for 18A technology, and the company intends to use 18A to mass produce its new Panther Lake technology this year, a new computer chip Intel believes will be the most advanced processor ever made in the U.S.

It's expected that Ohio's two semiconductor fabs will use 18A technology. Intel said Ohio's plant will build the "most advanced semiconductor processors in the U.S.," so it's likely the New Albany plant will produce Panther Lake technology using 18A.

Last week, Intel announced it will unveil its Q2 financial results on July 24, which will offer more insight into how Intel is doing. Intel confirmed it will enact substantial layoffs this summer, the details of which are also more likely to come to light with the Q2 results.

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