Intel has made the decision to abandon its ‘Intel 20A' process node for the upcoming Arrow Lake processors. The company will now rely on external nodes for every chip component, likely partnering with TSMC. This new approach means Intel will be responsible for assembling the externally manufactured chiplets into the final products.
Corporate Restructuring and Layoffs
The move is part of a broader restructuring plan, which includes the dismissal of 15,000 employees — one of the largest workforce reductions in Intel's 56-year existence. Previously, at the Innovation 2023 event, Intel showcased Arrow Lake processors using the 20A node. However, industry speculation had indicated that only a portion of Arrow Lake processors would use the 20A node, with most being fabricated on TSMC nodes.
Attention and resources have now been shifted to the more advanced 18A node, which is expected to launch in 2025. Intel reports strong yield metrics for this node, citing a defect density (D0) below 0.40 defects per square centimeter. Generally, a process node is deemed production-ready when its D0 drops to 0.5 or lower. The transition allows Intel to avoid the large capital costs associated with ramping up the 20A node for full-scale production.
Technological Innovations and Future Directions
The 20A node played a key role in pioneering several technological advancements like RibbonFet Gate-All-Around (GAA) transistor technology and PowerVia backside power delivery. These innovations have paved the way for the 18A node, which Intel claims has already successfully powered on and booted operating systems in lab tests. Additionally, Intel has provided its Process Design Kit (PDK) 1.0 to customers, enabling them to design and manufacture chips using Intel's technology.
As part of its IDM 2.0 initiative, Intel aims to become a foundry for external customers. Microsoft and the U.S. Department of Defense are among those who have already committed to using the 18A node. Intel plans to complete eight tape-ins by mid-2025 under this program.
