Intel mentioned Thursday that the corporate’s subsequent massive CPU guess, Panther Lake, stays on monitor to start delivery this 12 months, and the supporting 18A manufacturing course of has already entered manufacturing. Nonetheless, Intel plans to finish 2025 with simply 75,000 workers because it continues decreasing its workforce.
Intel chief government Lip-Bu Tan additionally characterised Intel’s transfer away from hyperthreading, begun with its “Arrow Lake” chip, as a mistake.
As Intel reported earnings for the second quarter of 2025, the corporate’s message was that it continues to execute on a technique to give attention to clients and engineering. As a part of that, Intel recorded $1.9 billion in restructuring prices, largely to do with reorganizing manufacturing and meeting operations.
“I do know the previous few months haven’t been straightforward,” Intel chief government Lip-Bu Tan wrote in a memo to workers. “We’re making exhausting however crucial choices to streamline the group, drive higher effectivity and improve accountability at each stage of the corporate.”
Tan’s targets are to “right-size” the corporate’s workforce and maintain them to account, by each trimming headcount and thinning the ranks of center administration. Tan additionally mentioned that the corporate is slowing the event of its Ohio chip fab — which was funded partly by the CHIPS Act, signed through the Biden administration. Intel plans to consolidate its meeting and check operations in Costa Rica to bigger websites in Vietnam and Malaysia, and never go ahead with “initiatives” in Poland and Germany. Intel was rumored to probably shutter operations in Israel, however that hasn’t occurred. Tan referred to as Intel’s manufacturing facility technique “needlessly fragmented” in a convention name with analysts.
Intel’s chip roadmap is on monitor…
Tan, nonetheless, appears to be utterly behind Intel’s current product roadmap, which is centered on Intel’s next-generation Panther Lake chip and the supporting 18A course of. He referred to as the 18A course of (and a associated 18A-P course of) “the inspiration of not less than the following three generations of Intel shopper and server merchandise,” Tan mentioned, delivering significant wafer volumes into the following decade.
“We really received’t get to peak volumes on 18A till in all probability the start of the following decade,” Intel chief monetary officer David Zinsner mentioned on the decision. “So that is going to be a node that we use for a really very long time, and we’re anticipating a very good ROI [return on investment] on it.”
Intel’s 14th-gen Raptor Lake chips proceed to be a scorching vendor.Intel
That’s a marked shift from previous years. Intel simply accomplished a breakneck course of of creating 5 course of nodes in 4 years, a part of former Intel chief government Pat Gelsinger’s technique of regaining a producing management after years of being unable to maneuver previous the 14nm course of node. Intel’s 18A course of was imagined to be the tip of that highway, although Intel not too long ago started speaking about an “18A-P” course of expertise, which would come with Intel’s RibbonFET and PowerVia applied sciences.
For now, clients proceed to purchase older chips like Raptor Lake, and demand for the Intel 7 course of expertise upon which they’re constructed stays tight, Zinsner mentioned. “I believe, , the value factors of Raptor Lake are, I believe, the place lots of shoppers and enterprises are shopping for PCs,” Zinsner mentioned.
Wall Avenue analysts appeared uncertain, with one even asking whether or not the manufacturing node past 18A, often called 14A, could be too late — or, to place it one other means, whether or not Intel was not directly saying that it could exit the foundry enterprise solely.
However future merchandise appear a little bit uncertain
Tan responded by saying that the 14A design workforce is “laser centered” on guaranteeing the essential constructing blocks of the expertise. However it feels like Tan is perhaps leaving Intel’s choices open. “The 14A is a course of node, however clearly I’ll make it possible for, , I see the interior buyer, exterior buyer quantity dedication, earlier than I put cap[ital] again into the operation.”
Tan mentioned later that the 14A course of ought to debut in 2028 or 2029.
Quickly, nonetheless, Intel expects clients to transition to the newer chips.
Panther Lake is Intel’s next-gen CPU, and one the corporate is pinning its hopes upon.Adam Patrick Murray / Foundry
“Panther Lake is our prime precedence as it’ll reinforce our power in notebooks throughout client and enterprise,” Tan instructed workers. “We additionally should drive continued progress on Nova Lake to shut gaps within the high-end desktop area.”
The primary Panther Lake processor stays on monitor to start delivery later this 12 months, with further merchandise coming within the first half of 2026, Intel mentioned.
Tan mentioned that he’ll log off on each new main product earlier than it tapes out. Tan additionally mentioned in an analyst name that he was not a believer in “for those who construct it, they’ll come.” As a substitute, Intel will construct what clients need, once they want it, he mentioned. Tan mentioned he’s additionally in favor of “cleaner,” extra environment friendly designs.
Apparently, Tan additionally criticized Intel’s resolution to remove hyperthreading, often known as simultaneous hyperthreading (SMT). Although he addressed this as a problem within the knowledge heart, it will likely be attention-grabbing to see whether or not Intel makes an identical resolution to return hyperthreading to its desktop and shopper chips, as effectively.
“Transferring away from SMT put us at a aggressive drawback,” Tan mentioned. “Bringing it again will assist us shut efficiency gaps.”
Lastly, Intel will transfer away from a strictly silicon-based strategy to AI. “We’ll focus our AI efforts on growing a cohesive silicon, system, and software program stack technique,” Tan mentioned.
“We now have rather a lot to repair to maneuver the corporate ahead, Tan mentioned. “And I’m decided to drive the modifications crucial to enhance our efficiency.”
Intel misplaced $2.9 billion for the second quarter, underneath the GAAP technique, recording flat income of $12.9 billion. Intel’s outlook, nonetheless, was higher than anticipated: $12.6 billion to $13.6 billion, which was greater than what Wall Avenue anticipated. Intel’s Consumer Computing Group revenues fell 3 % versus the identical quarter in 2024, right down to $7.9 billion.
This story was up to date at 3:29 PM with further particulars.
