Intel’s interim co-CEOs, Michelle Johnston Holthaus and David Zinsner, have provided a comprehensive overview of the company’s future direction, unveiling their strategic plans during a recent presentation.
Insightful Updates from Intel’s Interim Leadership on Foundry Operations and Business Strategy
In the wake of former CEO Pat Gelsinger’s departure, many have speculated about the path forward for Intel. At the recent Barclays technology conference in San Francisco, Holthaus and Zinsner shared key insights regarding the company’s future, including Intel Foundry’s operations and strategic shifts in their data center business.
One major announcement was regarding significant structural changes within Intel Foundry. The leadership confirmed plans to establish a dedicated operational board, marking a pivotal step toward transforming Intel Foundry Services (IFS) into a distinct entity. For further details, there is an article covering these developments extensively.
A particularly notable advancement pertains to Intel’s 18A manufacturing process. Holthaus highlighted that the upcoming Panther Lake system-on-chips (SoCs), which will succeed Arrow Lake, are set to leverage the 18A technology. Initial engineering samples, labeled “ES0,”have already been distributed to select partners, indicating that the 18A process is currently in the validation phase and functioning optimally, countering earlier concerns about potential flaws.
Now we are using Intel Foundry for Panther Lake, which is our 2025 product, which will land on 18A. And this is the first time that we’re customer zero in a long time on an Intel process.
But just to give some assurances, on Panther Lake, we have our ES0 samples out with customers. We have eight customers that have powered on, which gives you just kind of an idea that the health of the silicon is good and the health of the Foundry is good.
– Intel’s Michelle Johnston Holthaus
Additionally, Holthaus discussed Intel’s outsourcing strategy. The company has seen a shift in this area due to the underperformance of IFS. Highlighting the advantages of collaborating with external foundries like TSMC, she indicated that such partnerships have enabled the company to achieve favorable Average Selling Prices (ASPs). Nevertheless, Holthaus reassured stakeholders of the positive performance of Intel Foundry, suggesting that a “hybrid sourcing”model would likely be the way forward.
And what I found was at times, picking TSMC was the right decision, because where I could land on their performance price curve made the most sense for the ASP that I could get at the time.
But I’ll also say, TSMC has been a fantastic partner. They’re very easy to work with and myself being very customer-oriented, what I tell everybody at Intel every day is they’re the benchmark for what’s expected in the industry.
– Intel’s Michelle Johnston Holthaus
When discussing Intel’s ambitions in the AI sector, Holthaus acknowledged the challenges associated with the deployment of their Gaudi product line, which has seen slower adoption compared to competitors like AMD. However, she expressed confidence that Intel would redirect customers back to their AI offerings. Looking ahead, the company aims to stabilize its data center operations by next year and enhance its ecosystem’s scalability and deployment ease with the anticipated launch of Falcon Shores.
The discussion covered various aspects, including trends in AI PC sales and broader market dynamics. Ultimately, despite recent challenges, Intel’s leadership exuded optimism about the company’s future trajectory and growth potential.
Related Articles:
Intel’s Co-CEOs Outline Company’s Future Plans: Business Split, 18A Developments & AI Market Strategies
13:27
NVIDIA Unveils Teaser for Upcoming GeForce RTX 50 “Blackwell” Gaming GPUs Set to Launch at CES 2025
10:22
NVIDIA’s AIB Market Share Reaches 90% Amid 14.5% Decline in Total GPU Shipments in Q3 2024
9:13
Leave a Reply