Intel has recently faced a challenging second quarter, prompting a reevaluation of past investment strategies under new CEO Lip-Bu Tan. He has publicly distanced himself from the aggressive spending patterns of his predecessor, Pat Gelsinger, who famously ‘bet it all’ on the development of the 18A fabrication node.

Tan emphasized that going forward, Intel will adhere to a more cautious approach. He stated:

“I do not subscribe to the belief that if you build it, they will come. Under my leadership, we will build what customers need, when they need it and earn their trust through consistent execution.”

This shift comes amidst reports that Intel may reconsider the development of the next-generation 14A fabrication node if demand fails to materialize. The urgency underscored in recent SEC filings suggests that if significant external customers are not secured, Intel may halt or terminate its pursuit of the 14A node along with various manufacturing projects.

Tan’s leadership aims to prevent the company from overextending itself again, recognizing that prior capacity investments were made without adequate demand and resulted in excess fragmentation in operations. He underscored the necessity of economic prudence:

“There are no more blank checks. Every investment must make economic sense.”

This focus on aligning production with actual market needs highlights a stark departure from previous strategies under Gelsinger, which were often characterized by high-risk and high-reward bets on future technologies.