Intel has only 18 months to secure a significant customer for its advanced manufacturing capabilities, specifically its upcoming 14A chip node. Analyst Stacy Rasgon from Bernstein & Co. highlights the urgency of the situation, warning that if Intel fails to attract a key external client, the future of its cutting-edge fabs will be at risk.

Intel aims to begin manufacturing on the 14A node by 2028 or 2029, following the introduction of the 18A process expected later this year. Rasgon emphasizes the importance of this timeframe, stating that the ramp-up to a new process necessitates swift action to sign a major customer.

If Intel fails to meet these milestones, it could lead to a halt in the development of the 14A node and potentially halt investments in its leading-edge manufacturing strategies. According to Intel, without a significant commitment from external customers, it may not be financially viable to advance with the 14A node and subsequent projects.

Stacy Rasgon adds that just the prospect of exiting the advanced chip sector might deter potential clients, making it crucial for Intel to demonstrate commitment to securing these partnerships. While CEO Lip-Bu Tan has expressed optimism by stating that Intel is actively collaborating with clients to ensure the 14A node meets their requirements, the industry’s confidence in Intel’s direction appears to be shaky as critical deadlines loom.

In light of these developments, it remains uncertain if Intel can navigate these challenges and maintain its position in the competitive semiconductor landscape.