Intel has recently faced a dual challenge: on the one hand, CEO Pat Gelsinger announced his resignation, and on the other hand, the yield problem of the company's next-generation 18A process has also raised concerns. The yield of the 18A process was exposed to be only 10%, which means that mass production of the process is almost impossible. Gelsinger's departure and manufacturing technology bottlenecks make Intel's future uncertain.
Challenges under Gelsinger's leadership
Pat Gelsinger took over as CEO of Intel in 2021 and led the company out of trouble. However, in the face of fierce market competition, especially the rise of TSMC and Samsung, Intel failed to achieve the expected technological breakthroughs. Under Gelsinger's leadership, Intel's stock lost 61 percent in market value and lost key customers like Apple. Apple's M-series chips moved to their own designs, further weakening Intel's position in the consumer electronics market.
Despite Gelsinger's efforts to push Intel's breakthroughs in advanced process nodes and increase its investment in the semiconductor foundry business, Intel has not been able to keep up with its competitors, especially in the mass production of 7nm and 10nm processes.
18A process yield problem: a major bottleneck
Intel was hoping to reinvigorate with the 18A process, but now the process is facing serious yield problems. According to reports, the yield rate of the 18A process is only 10%, which is far below the industry standard, meaning that most of the chips produced cannot meet the shipping standard. This makes it almost impossible for Intel to mass-produce the 18A process as planned.
This issue is a big blow for Intel, especially since the company has been using the 18A process as the key to competing with TSMC's 3nm and 2nm nodes. However, low yields mean that Intel's technological progress in advanced semiconductor manufacturing is still lagging behind. Without addressing this issue, Intel's production costs will remain high and it will not be able to meet the growing market demand.
Figure:What Lies Ahead for Intel Amid Two Challenges? (Source: WCCFTECH)
Intel's response and future outlook
Following Gelsinger's resignation, Intel announced the appointment of interim CEOs David Zinsner and Michelle Johnston Holthaus to co-lead the company. The move marks a possible new shift in the company's strategy, especially in terms of product and innovation direction. At the same time, Intel is also increasing R&D investment, opening an AI R&D center in Vietnam, and plans to accelerate the application and development of AI technology through cooperation with local universities, startups and governments.
Despite leadership and manufacturing challenges, Intel is pushing its AI footprint to find new growth in this fast-moving market.
Conclusion: Intel's future is at stake
Intel is at a critical inflection point, facing the dual pressure of leadership change and technology bottlenecks. Gelsinger's resignation and the yield issue of the 18A process are a microcosm of the company's long-term woes. Although Intel has made some efforts in restructuring and AI research and development, it is still a huge challenge to overcome the current manufacturing challenges and restore market competitiveness. If Intel can solve these problems, it may be able to regain its foothold in the semiconductor industry; Otherwise, it will continue to face the risk of being eliminated from the market in the future.
