Intel's new CEO, Lip-Bu Tan, is considering a major strategic shift in the company's chip manufacturing business by potentially discontinuing the external sales of its 18A (angstrom) process and instead focusing on the next-generation 14A process. This move represents a departure from the plans of former CEO Pat Gelsinger, who had heavily invested in the 18A node. The decision is driven by weak customer interest in the 18A technology and aims to better position Intel against competitors like TSMC. Analysts warn that writing off the 18A and 18A-P manufacturing processes could cost Intel hundreds of millions of dollars, possibly reaching into the billions. The shift could also mean Intel withdrawing from the broader foundry market for several years as it reallocates resources to the 14A process, where it expects to have competitive advantages. Intel's board is expected to discuss these options within the month. This strategic reconsideration comes as part of CEO Tan's broader efforts to cut costs and revive the ailing U.S. chipmaker amid global competitive pressures.
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"Intel, once the undisputed titan of the semiconductor world, is confronting a sobering new reality under the leadership of its recently appointed chief executive, Lip-Bu Tan. In a candid address to employees this week, Tan acknowledged that the company has slipped far from its