Intel Corporation is facing challenges with the manufacturing process of its next-generation 18A chip, known as Panther Lake, which is intended for high-end laptops. According to multiple sources, the company is experiencing very low yield rates estimated between 5% and 10%, making the production of these chips currently unprofitable and delaying plans for high-volume commercial production expected in 2025. This setback impacts Intel's goal to compete with Taiwan Semiconductor Manufacturing Company (TSMC) and to revive its advanced chip manufacturing capabilities. Intel CEO Lip-Bu Tan, who took the helm in March 2025, is encountering internal disagreements within the company's board regarding the future of its manufacturing business. These tensions have been exacerbated by external political pressure, as former President Donald Trump and Senator Tom Cotton have publicly called for Tan's resignation, criticizing his investments linked to China and alleging indirect Chinese military funding. Despite this, Tan has stated he has full support from Intel's board and has emphasized the company's commitment to legal and ethical standards. Intel recently received an $8 billion bailout amid its ongoing struggles. Tan is scheduled to meet with Trump at the White House to discuss these issues. Industry observers note that Intel's decline traces back two decades, marked by unsuccessful acquisitions in telecommunications and wireless sectors. Meanwhile, rumors suggest that the high-volume manufacturing (HVM) ramp for the 18A process may be postponed to next year due to the quality issues.
*INTEL CEO LIP-BU TAN SET TO MEET TRUMP, SOURCES SAY: WSJ *INTEL CEO TO VISIT WHITE HOUSE ON MONDAY:WSJ
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Intel’s decline began some 20 years ago, when the company made multiple acquisitions, many of which were in telecommunications and wireless technology. David Yoffie, who was on the board at the time, told Fortune “100% of those acquisitions failed." https://t.co/ukGIJOHGXL