What Intel needs is external customers for its so-called cutting-edge 14A manufacturing process a tough ask, at least in the short term.
CEO Lip-Bu Tan, who took the top job in March, warned last month that the company may have to quit the chip contracting business if it does not land any big clients. Going forward, our investment in Intel 14A will be based on confirmed customer commitments, he said.
Kinngai Chan, analyst at Summit Insights, underlined the economic rationale of Tans message. "Intel must secure enough customers volume to go to production for its 18A and 14A nodes to make its foundry arm economically viable," he said, referring to Intels manufacturing processes.