Intel is aggressively pushing its 18A chip manufacturing process to PC partners. The company is using a forced bundling strategy due to capacity bottlenecks in its Intel7 process. One PC maker ordered 100 Intel7 processors but received only 30, with 10 replaced by 18A chips. Intel threatened to reallocate orders if the PC maker refused the 18A chips.
PC maker executive confirms Intel's ultimatum
Switching to 18A forces PC makers to redesign products and increase costs. A PC maker executive said that if they refuse to accept these 18A chips, the allocation will be given to other customers, and Intel will not replenish the originally ordered Intel7 chips.
Apple has signed an agreement with Intel to use 18A-P for future M7 series chips. Apple may adopt 14A technology for smartphone processors by the end of 2028. Analyst Ming-Chi Kuo said Apple's deal with Intel is to secure an alternative supplier amid TSMC capacity crunch. Due to surging demand for AI GPUs, TSMC's advanced chip production lines are at full capacity. Apple chose to reach an agreement with Intel to lock in an alternative supplier, thereby gaining leverage in negotiations with TSMC.
Intel has not confirmed the details of its 18A chip rollout or the forced bundling strategy.
Discussion
0 comments
Log in to join the thread with a thoughtful take, question, or correction.