In a brand new analysis be aware shared this week, analyst Jeff Pu mentioned that Apple could possibly be among the many prospects contemplating Intel’s upcoming 14A course of for future M-series chips. Then, got here Intel’s Q2 outcomes, and a few essential details about the way forward for its enterprise.
Flat outcomes, tanking inventory
To say that Intel has been going by means of a years-long tough patch can be an understatement. Simply immediately, their inventory tumbled 8.5% after a weak Q2 report, the primary full quarter below the helm of their new CEO, Lip-Bu Tan.
Since taking up in April, Tan has been chopping and restructuring the corporate’s a number of roadmaps (and companies), hoping to eliminate what’s been holding it again, and leaning into the place it might make up for misplaced time and begin getting out of the rut.
A kind of bets is the corporate’s next-generation 14A node, which was developed largely in-house, and could possibly be Intel’s final shot at remaining within the chip manufacturing enterprise.
As reported by Reuters, after the discharge of its Q2 outcomes, Tan made it clear that until the corporate secures at the least one main buyer for 14A, it could shut down its superior foundry efforts altogether:
New CEO Lip-Bu Tan mentioned on Thursday the corporate’s engineers have been busy working with prospects to jump-start its next-generation contract manufacturing course of, or foundry (…)
These prospects for the corporate’s so-called 14A manufacturing course of are essential to the success of the expertise – a lot in order that if it fails to safe an enormous one, it may shut down its cutting-edge manufacturing enterprise altogether, in line with Intel’s quarterly submitting on Thursday.
“We’re creating Intel 14A … from the bottom up in shut partnership with massive exterior prospects,” Tan mentioned in a memo launched with the outcomes. “Going ahead, our funding in Intel 14A shall be based mostly on confirmed buyer commitments.
“We’ll construct what our prospects want, once they want it, and earn their belief by means of constant execution.”
Again to Jeff Pu’s be aware
In response to Pu, Intel has already began handing out early 14A course of design kits (PDKs) to companions, and Apple is without doubt one of the corporations displaying curiosity:
The following focus Intel 14A course of will incorporate second-gen RibbonFET and PowerDirect, marking a technological evolution constructed upon the inspiration of the PowerVia launched in Intel’s 18A. Focusing on each AI and edge purposes, Intel has already supplied early variations of the 14A PDK to key prospects, with a number of expressing curiosity in producing take a look at chips. We anticipate NVIDIA’s gaming GPU (low-end model) and Apple’s M collection to emerge as adopters of Intel14A.
Because of this Pu believes that each Apple and NVIDIA shall be among the many first prospects to undertake 14A, probably for lower-end gaming GPUs and future M-series chips, respectively.
Apple’s case is especially fascinating as a result of the M-series chip manufacturing has been unique to TSMC, however having Intel as a second supply (particularly with U.S.-based fabs) may show fairly helpful amid rising geopolitical (and commerce) tensions.
Do you consider Apple will return to having Intel as a foundry companion? Tell us within the feedback.
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