Intel's interim co-CEOs, Michelle Johnston Holthaus and David Zinsner, have provided an extensive update on the company's future direction, addressing key areas such as Intel Foundry, the 18A process, and the company's AI strategy.
Intel Foundry and Business Restructuring
Intel is implementing significant structural changes within Intel Foundry, including the creation of a separate operational board. This move suggests a potential segregation of IFS into an independent entity. The company has also confirmed that its next-gen Panther Lake SoCs, successors to Arrow Lake, will be built using the 18A process.
"Now we are using Intel Foundry for Panther Lake, which is our 2025 product, which will land on 18A...We have our ES0 samples out with customers...the health of the silicon is good and the health of the Foundry is good." - Michelle Johnston Holthaus, Intel
18A Process and Outsourcing Strategy
Intel has already sent initial engineering samples (ES0) of 18A-based chips to partners, suggesting the process is in the validation stages and performing well. Despite investing heavily in Intel Foundry, the company acknowledges the importance of external foundries like TSMC. Intel plans to use a "hybrid sourcing" model, choosing the most cost-effective and timely manufacturing solutions.
"At times, picking TSMC was the right decision...TSMC has been a fantastic partner...they're the benchmark for what's expected in the industry." - Michelle Johnston Holthaus, Intel
Future of AI Business
Intel acknowledges that its Gaudi AI product line faces challenges in deployment and adoption. While AMD has been more successful in this segment, Intel aims to regain market share. The company plans to focus on creating a more scalable and easily deployable AI ecosystem with the launch of Falcon Shores in the coming year.
In conclusion, Intel's co-CEOs expressed confidence about the future of the business, and despite challenges, the company is working on a strategy that they believe will lead to growth.
