Intel: New Strategies for the Future between Foundry, 18A and AI | Microsoft ai copilot | Generative ai in banking mckinsey | Google ai courses free | Turtles AI

Intel’s interim co-CEOs, Michelle Johnston Holthaus and David Zinsner, shared key strategic plans for the company’s future. They discussed innovations like the 18A process, the evolution of the Foundry division, AI challenges, and the direction of the data center business.

Key Points: 

• Intel Foundry is separating into a new entity with a dedicated operating board.
• The 18A process is being validated with good results, including ES0 samples for customers.
• Intel continues to explore a hybrid sourcing model with the use of external foundries such as TSMC.
• Intel’s AI strategy is focused on winning back customers, with the upcoming launch of Falcon Shores.

Intel’s interim co-CEOs Michelle Johnston Holthaus and David Zinsner recently provided a key update on the company’s future at the Barclays Technology Conference in San Francisco. The discussion touched on a variety of topics, with a particular focus on internal reorganization, technological advances, and future challenges, indicating where the company intends to go in the coming years. One of the most notable is Intel Foundry, which is undergoing a significant transformation. The company has begun a separation process, creating a dedicated operating board to manage the division, which is an important step toward its autonomy, although it has not yet been fully separated from the main structure. This change is part of Intel’s broader strategy to rethink its approach to the foundry business, a sector that has so far seen increasing competition from players such as TSMC. The management of the division, now in the spotlight, reflects Intel’s intention to not only be a customer of its own foundries, but to expand its role in the external foundry market.

Another key topic of the talk was the 18A process, a major step forward in the production of advanced chips. Holthaus enthusiastically noted that the Panther Lake chips, set to be released in 2025, will be built using this technology. Initial engineering samples (ES0) have already been distributed to some strategic partners, signaling that Intel has managed to overcome some previous rumors that the 18A process may be struggling. With this progress, the company appears to have made important strides in regaining its technological competitiveness, showing that the Foundry is performing well and strengthening its position in the market.

When discussing the sourcing strategy, Holthaus acknowledged that, in some circumstances, relying on external foundries such as TSMC has been a beneficial move for Intel, especially in terms of pricing and timing. However, he also emphasized that Intel is pleased with the progress made internally with Intel Foundry and will continue to explore a hybrid solution, combining the best of in-house and external capabilities. This approach will allow the company to maintain flexibility and competitive costs, while continuing to respond quickly to market needs.

Finally, one of the most discussed topics was the future of AI. Intel acknowledged that its Gaudi product line, while representing a promising technology, has encountered difficulties in adoption, mainly due to the complexity of implementation. Despite the challenges, Holthaus confirmed that Intel is working to make its AI products more scalable and easy to integrate, with the aim of regaining customers in the segment. The introduction of Falcon Shores, scheduled for next year, should represent a turning point in this area, with more accessible and easy-to-use products, destined to strengthen Intel’s position in the growing AI market, where competition, especially from AMD, is increasingly fierce.

The company is therefore in a period of renewal and transition, with important investments and changes that could strengthen its competitive position, but also with significant challenges to face.