Ann Kelleher, the executive who led Intel’s technology roadmap through the challenging transition beyond its troubled 7nm delays, will retire after 27 years with the company. Her departure, confirmed by Intel, coincides with the critical ramp-up of Intel’s advanced 18A manufacturing process node. Intel’s decision to divide her responsibilities highlights the urgency of addressing the company’s manufacturing and financial struggles.
Instead of a direct successor, Kelleher’s role will be split between two executives. Naga Chandrasekaran will oversee front-end process engineering, while Navid Shahriari takes charge of advanced packaging and testing operations. Kelleher will remain temporarily as an advisor to Intel Foundry Services (IFS), assisting the transition as Intel aggressively targets external foundry customers.
Lip-Bu Tan’s Strategic Vision Triggers Broad Changes
The leadership reshuffle aligns closely with the arrival of new CEO Lip-Bu Tan, appointed on March 12, to guide Intel through severe financial turbulence. Intel reported its largest loss since 1986 in its detailed financial disclosure for 2024, totaling $18.8 billion, with $13.4 billion specifically tied to its struggling foundry division.
Tan, addressing Intel employees, openly acknowledged these challenges, stating: “We have a chance to do something special together. In many ways, we are the founders of ‘The New Intel.’ We will learn from past mistakes, use setbacks to strengthen our resolve, and choose action over distraction to reach our full potential.”
Central to Tan’s strategy is expanding Intel Foundry Services beyond internal clients. Recent reports confirm that major industry players Nvidia and Broadcom are currently testing Intel’s 18A manufacturing technology, a development that has boosted investor confidence, reflected by an 8% rise in Intel’s stock value.
However, potential partnerships carry complexity. Early speculation about a joint manufacturing venture involving TSMC and Nvidia has been clarified. Nvidia’s CEO Jensen Huang explicitly stated that Nvidia has not been invited to participate in such discussions, diminishing expectations of an imminent joint venture with TSMC.
Ohio Factory Delay Adds to Manufacturing Pressure
Intel’s strategic shift coincides with setbacks in its ambitious U.S. manufacturing plans. Despite receiving a $7.86 billion CHIPS Act subsidy, Intel’s planned Ohio chip factory has been delayed until 2030, casting doubt on Intel’s commitment to reclaiming domestic semiconductor leadership. The delay heightens the stakes for Intel’s 18A node, now critical for demonstrating the company’s manufacturing competitiveness.
Alongside manufacturing changes, CEO Tan is refocusing Intel’s product roadmap on artificial intelligence. Intel recently cancelled its Falcon Shores GPU project, shifting instead to Jaguar Shores, a new AI-focused architecture expected to debut in 2027, according to a recent report by Tom’s Hardware.
Intel’s Gaudi accelerators continue to face modest market adoption compared to Nvidia’s GPUs. At CES 2025, Intel showcased its Core Ultra Series 2 processors, explicitly aimed at AI-intensive workloads. Yet ongoing stability issues, as evidenced by urgent firmware updates to Arrow Lake processors in December 2024, underscore Intel’s challenge in consistently meeting performance expectations.
Intel Bets on 18A Node to Regain Manufacturing Leadership
Intel’s 18A manufacturing process, currently undergoing initial wafer runs in its Arizona facility, incorporates two major innovations: RibbonFET transistors and PowerVia backside power delivery technology. RibbonFET provides significant efficiency and performance gains, while PowerVia allows better scalability and reduced power consumption, according to Intel’s official technical documentation.
The timing of Intel’s 18A production closely aligns with TSMC’s N2 process node, which enters high-volume production later in 2025. Intel’s early engagements with major clients like Nvidia and Broadcom could significantly enhance its competitive position if early tests prove successful. Nevertheless, analysts caution that real-world performance consistency remains critical for validating Intel’s ambitious plans.
With Kelleher’s retirement and the leadership transition underway, Intel’s recent strategic moves reflect a decisive response to its challenging financial situation and growing competition in both manufacturing and AI technologies. The execution of the 18A process node, closely watched by industry observers, will serve as a major test of CEO Lip-Bu Tan’s vision and Intel’s broader ability to regain its manufacturing prominence.
