Intel Unveils 1.4nm Chip Production Plan, Aims to Rival TSMC Dominance

As first reported by Nikkei Asia, Intel has recently announced its intention to enter cutting-edge chip production at the 1.4-nanometer level.

This is a significant move for Intel, as it seeks to challenge Taiwan Semiconductor Manufacturing Co. (TSMC)'s market dominance.

During Intel's inaugural foundry event, Intel Foundry Direct Connect, CEO Pat Gelsinger unveiled the company's ambitious roadmap, introducing the world to "Intel 14A" - its groundbreaking 1.4nm technology.

This announcement puts Intel in direct competition with TSMC and Samsung Electronics, which are currently leading the race with their 3nm chips.

According to Counterpoint, TSMC dominates the foundry industry with a nearly 60% market share. Samsung is second with about 13%, followed by Taiwan's UMC at 6%.

Challenges Ahead

The significance of this advancement is the number of transistors that can be packed onto a single chip. A smaller nanometer size indicates a more advanced chip, and Intel's transition to 1.4nm demonstrates the company's commitment to pushing the boundaries of semiconductor technology.

Gelsinger emphasized Intel's goal of becoming the world's second-largest foundry by 2030, citing artificial intelligence (AI) as a key driver of demand for advanced chips.

Microsoft has already selected Intel's 18A process for chip manufacturing, demonstrating trust in Intel's capabilities.

However, Intel's path to dominance faces obstacles, as evidenced by the delay in its $20 billion chip manufacturing project in Ohio. Market dynamics and slow government grant disbursement have forced Intel to adjust its timeline, with chip production now scheduled to begin in late 2026.

Despite these setbacks, Intel remains committed to the project, expecting to create 3,000 new factory jobs and receive significant funding from both Ohio and the federal government.

The company's expansion projects in multiple states demonstrate its determination to remain competitive in the ever-changing semiconductor landscape.

Intel's resilience in the face of market challenges is evidenced by its response strategies, which include job cuts, dividend reductions, and the pursuit of investment partnerships.

Recent positive signs, such as a recovery in PC sales and increased demand for AI chips, point to a potential turnaround for the company.

In Other News

According to recent reports, Taiwanese chipmakers are expanding their presence in Japan, a significant trend reshaping the country's semiconductor landscape.

This move coincides with a global shift in the chip industry dynamics, fueled by factors such as US-China trade tensions and Japan's proactive efforts to rebuild its semiconductor sector.

Nine Taiwanese chipmakers have established or expanded their operations in Japan over the last two years. Notable examples include Alchip Technologies and eMemory Technology, which have opened offices and hired local employees.

This expansion is driven by Japan's expanding semiconductor market and aided by factors such as a weaker yen and a favorable business environment.

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