Intel has warned that it may halt development of its next-generation chip, known as 14A, in a major blow to the company, which is already going through tough times.
Intel has warned that it may halt development of its next-generation chip, known as 14A, in a major blow to the company, which is already going through tough times.
Intel reported in its regulatory filing that it is focused on developing 14A and finding a large customer, but does not rule out a pessimistic scenario. Business Insider writes about this.
«If we are unable to attract a significant external customer and achieve important milestones for Intel 14A, we face the prospect that the development and production of Intel 14A and subsequent advanced nodes will not be economically viable. In such a case, we may suspend or discontinue development of Intel 14A and subsequent nodes,» the company wrote.
There is a lot of hope for the 14A — it is an advanced chip and manufacturing system that is one of Intel’s last chances to catch up with TSMC, the Taiwanese company that has become the world’s leading manufacturer.
Intel dominated the chip industry for decades, but it missed two big technology waves: mobile and artificial intelligence. Most competitors abandoned its production a few years ago and now send their designs to TSMC for production.
If Intel does indeed cancel development of the 14A, it could be a death blow to chip manufacturing in the U.S. While the move could be financially beneficial for Intel, strategically it could be bad news for America.
«Intel, the birthplace of Moore’s Law, is assessing for the first time in history whether it will continue to be a leader. We can also talk about TSMC’s monopoly and the death of American semiconductors forever,» believe Semianalysis, a company that analyzes the chip manufacturing industry.
Recall that in March 2025, Intel Corporation appointed a new CEO to replace Pat Gelsinger, who resigned at the end of last year. He was a little-known but influential leader in the tech industry, Lip-Bu Tan. If he manages to lead the company out of the crisis, he will receive a 200% bonus and earn about $69 million .
Intel is currently looking to streamline its costs and is closing its projects in Germany and Poland, as well as its assembly and testing operations in Costa Rica. The company plans to end 2025 with a total of about 75,000 «core employees,» meaning about 24,000 Intel employees will lose their jobs .
