Intel Faces 18A Process Challenges, Focuses on Packaging and Upcoming 14A Node
Intel is facing challenges with its 18A process, which is struggling with yield issues and lacks significant customers. Despite this, Intel is leveraging its packaging capabilities and focusing on the upcoming 14A process to remain competitive. Meanwhile, the company is set to receive substantial federal subsidies to support U.S. government and defense needs.
Intel's Foundry Services (IFS) has been relatively quiet despite aiming to rival TSMC and Samsung. The 1.8nm-class 18A process, initially planned for foundry use in 2025, is now primarily for internal use due to yield problems and a lack of major customers. Intel is instead focusing on its packaging technologies like Foveros and EMIB, which enable multi-technology integration and system-level efficiency in the near term.
Intel's future in the foundry market depends on proving the worth of its chips to major industry leaders currently using TSMC. The company is banking on the upcoming 14A process, believed to be more competitive than the troubled 18 node. By shifting focus to packaging, Intel buys time to mature its foundry while demonstrating value through integration using proven dies.
Intel is set to receive up to $7.9 billion in federal subsidies to support U.S. government and defense needs. By leveraging its U.S. footprint and CHIPS Act subsidies, Intel aims to become the first to bring advanced-node production online within American borders. Despite current challenges, Intel is positioning itself for future success in the foundry market.
