Intel's Strategic Shift: CEO Lip-Bu Tan Eyes Overhaul of Chipmaking Business

A New Chapter for Intel’s Foundry Vision

Intel, once the undisputed king of semiconductor manufacturing, is preparing for a radical transformation under the leadership of its new CEO, Lip-Bu Tan. Just months into his tenure, Tan is reportedly planning a strategic overhaul of Intel’s chip manufacturing operations, signaling a potential pivot away from the roadmap laid out by his predecessor, Pat Gelsinger. According to an exclusive Reuters report, Tan is reassessing the viability and market attractiveness of Intel’s 18A chipmaking process and considering a bold shift to a newer generation known as 14A. This internal recalibration may position Intel more competitively against dominant industry players like TSMC, which currently leads the foundry market with advanced nodes such as N2 and N3.

Sources close to

Internally, Intel is undergoing significant restructuring. Under Tan’s guidance, the company has ramped up hiring for key engineering roles and simplified its management layers to streamline innovation and execution. After reporting a staggering \$18.8 billion net loss in 2024—its first since 1986—Intel is under intense pressure to redefine its strategy and reclaim its industry stature.

Tan is expected to present strategic alternatives to the board later this month, though a final verdict may take time given the stakes involved. In the interim, Intel will continue producing 18A for internal purposes and pre-existing contracts with firms like Amazon and Microsoft, while quietly laying the groundwork for a possible next-gen 14A revolution.

What Undercode Say:

Intel’s transition under Lip-Bu Tan reflects the broader reality of the semiconductor arms race—innovation alone isn’t enough without market alignment. While former CEO Pat Gelsinger’s 18A ambitions were bold and technologically impressive, they lacked one critical element: demand. In the high-stakes chipmaking industry, customer traction—especially from external partners—is everything.

Tan’s potential pivot to the 14A node is not merely a technological update; it’s a commercial recalibration. By aligning Intel’s roadmap more closely with client needs and market readiness, Tan may be steering Intel away from another costly misfire. It’s clear that Intel cannot afford to throw good money after bad, especially after the brutal \$18.8 billion loss last year. That sort of deficit underscores the consequences of missing the market, even by just one generation.

Moreover, Tan’s background in both venture capital and chip design gives him a rare dual-perspective—he understands technology risk and market timing. His apparent skepticism toward 18A’s commercial feasibility reflects this pragmatism. While 18A may continue to serve internal needs, the real prize is external foundry clients, particularly those disillusioned with TSMC’s growing dominance and recent capacity constraints.

The reported pivot also signals a subtle but powerful message: Intel is done playing catch-up. By going all-in on 14A, the company may actually leapfrog ahead if the process delivers as promised and is marketed strategically. Of course, execution will be everything. Any delay or underperformance could sink confidence further.

The bigger picture? Intel isn’t just betting on smaller nodes—it’s betting on relevance. If it can recapture the interest of premium clients and disrupt the Apple–TSMC pipeline, Intel could become a major player again in outsourced chip manufacturing. However, doing so requires more than engineering—it demands customer obsession, pricing flexibility, and relentless execution.

Tan’s leadership may also mark a philosophical shift at Intel: less ego, more enterprise. Rather than chasing vanity milestones or trying to “out-Gelsinger” the past, Tan seems focused on adapting to where the puck is headed—not where it used to be.

🔍 Fact Checker Results

✅ 18A and 14A Nodes: Verified through industry reports as Intel’s in-development process technologies, with 14A likely targeting a 2026–2027 window.

✅ $18.8B Net Loss: Confirmed in

✅ TSMC’s N2/N3 Processes: In commercial production, placing TSMC ahead of Intel in node shrink leadership.

📊 Prediction

Lip-Bu Tan’s pivot toward 14A will likely gain board approval by Q4 2025, with pilot production beginning in late 2026. Intel may announce new strategic partnerships—potentially with AI chip firms or even automotive players—by mid-2026. If 14A proves technically sound and economically viable, it could represent Intel’s re-entry into the competitive foundry arena, especially for advanced packaging and AI-centric clients.