Intel Cancels 20A Node for Arrow Lake

Intel has made a strategic shift by canceling its 20A process node for the upcoming Arrow Lake processors, opting instead for external manufacturing, likely with TSMC. This move, announced recently, marks a significant change in Intel’s production strategy as it focuses on cost efficiency and advanced technology.

Focus on 18A Node and Cost Reduction

Intel CFO Dave Zinsser highlighted during the Citi Global TMT Conference that the decision to skip the 20A node is part of a cost-saving strategy. By avoiding the extensive capital expenditures required for a full-scale 20A production, Intel projects it will save approximately half a billion dollars. “We will save substantial amounts by not fully developing the 20A node and instead focusing on the more advanced 18A,” Zinsser stated.

The 18A node, which Intel plans to release in 2025, is already showing promising results. Intel reported that the node has achieved a defect density of less than 0.40 D0, a key indicator of manufacturing yield rates. With chips already operational and booting operating systems, Intel seems confident in the capabilities of its next-generation node.

Intel’s choice to move Arrow Lake production to external foundries is also part of a broader strategy to streamline its manufacturing processes. The company will now rely on partners like TSMC or Samsung for the actual production of Arrow Lake processors, while Intel will handle the packaging. This decision follows Intel’s demo of Arrow Lake processors on the 20A node, indicating a significant pivot from its initial plans.