Intel Faces Foundry Risks Amid 14A Node Customer Uncertainty

Intel CEO Lip-Bu Tan has emphasized that the company's future in cutting-edge chip manufacturing, particularly its 14A process node, depends heavily on securing committed external customers. While Intel is prioritizing ramping up its 18A technology, Tan has indicated a cautious approach by slowing or canceling fab expansions in Germany, Poland, and Ohio, aligning investments strictly with confirmed demand. Without major customer commitments, Intel risks halting development of its 14A node and subsequent technologies, potentially ceding advanced chipmaking leadership to Taiwan's TSMC and increasing U.S. dependence on foreign manufacturers. The potential exit from the cutting-edge foundry business marks a significant strategic shift from former CEO Pat Gelsinger's aggressive expansion, placing nearly $100 billion in investments at risk. Despite efforts to reposition the company through cost-cutting and refocused customer engagement, Intel’s stock has faced volatility amid concerns over its foundry business viability and broader AI strategy. This crossroads for Intel underscores the broader challenges facing U.S. semiconductor independence and the global chip supply chain landscape.