Key Points
- Intel has begun production of its most advanced chipmaking process, 18A, in a bid to catch up with rival TSMC.
- The company has so far failed to attract a major outside customer for the new technology.
- Intel fell behind after years of manufacturing delays and strategic missteps.
- The U.S. government recently invested $8.9 billion to take a 10% stake in the company, highlighting its strategic importance.
Once the undisputed king of the semiconductor world, Intel is now fighting for a comeback. After falling behind rival TSMC, the American chip giant is pinning its hopes on a new, cutting-edge manufacturing process called 18A. The company says this technology will put it back on top, but there’s a significant problem: it can’t yet convince any major external companies to adopt it.
For now, Intel’s only big customer for its most advanced technology is itself. The company’s new PC processor, scheduled for release in January, will be the first major product built on the 18A node. “It’s become an internal node for now,” said Daniel Newman, CEO of Futurum Group.
The issue is that major chip designers like Nvidia and AMD have invested billions in TSMC’s proven process and are reluctant to switch.
Intel’s struggles stem from years of missteps and delays. After dominating the industry for decades, the company famously missed the mobile revolution and then whiffed on AI.
In 2024, its stock lost 60% of its value. Under new leadership, the company is making a major push to become a “foundry” that manufactures chips for other companies.
To help the struggling icon, the U.S. government recently acquired a 10% stake in Intel for $8.9 billion. SoftBank and Nvidia have also invested billions. These moves underscore the high stakes not just for Intel, but for the United States, which is desperate to bring advanced chip manufacturing back to American soil.
As one expert put it, “The stakes are incredibly high for Intel, for the U.S. and for the world.”
