Intel is reportedly abandoning its solo approach to developing glass substrates, a critical next-generation chip packaging technology. The rumored move, shared by semiconductor expert Jukan Choi, is part of a sweeping corporate overhaul under new CEO Lip-Bu Tan that will see the Santa Clara giant rely on external suppliers.
This strategic pivot follows the reported failure of Intel’s 18A process to secure foundry customers. It comes amid immense financial pressure after an $18.8 billion loss in 2024. The decision signals a major operational shift as Intel battles to regain manufacturing leadership.
The company now refocuses on its future 14A node, not expected until late 2027, to compete with rivals. This shift underscores the immense challenge facing Tan, who took the helm in March 2025. The pivot is compounded by setbacks like the Ohio factory delay to 2030.
The Glass Substrate Gambit: From Solo to Supplier
Intel’s decision to partner on glass substrates marks a significant retreat from its historical do-it-all approach. The technology is crucial for advanced packaging, offering superior thermal and mechanical stability over organic materials, which allows for larger and more complex chiplet integrations.
Instead of leading this charge alone, Intel now appears to be turning to specialists. South Korean firms are emerging as frontrunners. JNTC recently celebrated the completion of its first glass substrate factory in May and plans to begin mass production in August 2025.
Rumor: Intel Significantly Restructures Glass Substrate Workforce, Shifting Towards Off-the-Shelf Solutions
Rumors suggest that Intel has undertaken a major restructuring of its glass substrate workforce. It appears the company is moving away from the strategy of internally…
— Jukan Choi (@Jukanlosreve) July 2, 2025
The company has set ambitious growth targets, projecting sales to grow from 20 billion won this year to 1 trillion won by 2028. This growth will be supported by a new factory in Vietnam with three times the capacity of its first plant. Other giants like Samsung Electro-Mechanics are also ramping up production.
Jang Sang-wook, J&TC’s Chairman, highlighted their readiness, stating, “We were able to quickly develop TGV glass substrate technology based on glass etching and plating technologies accumulated over decades.” This established expertise likely makes them an attractive partner for Intel, which needs to de-risk its supply chain.
A New CEO’s Sweeping Overhaul
This pivot is a direct consequence of the drastic changes initiated by CEO Lip-Bu Tan. Facing deep-seated operational issues, Tan launched a broad corporate reorganization in April 2025 to flatten a slow-moving structure. He was candid with staff about the need for change, stating, “It’s clear to me that organizational complexity and bureaucratic processes have been slowly suffocating the culture of innovation we need to win.”
The overhaul includes significant but unspecified workforce reductions that began in Q2 2025. This followed earlier reports that cuts could potentially exceed 20%. These measures are part of a wider cost-saving initiative to reverse the company’s financial fortunes.
To sharpen its AI strategy against Nvidia, Tan appointed Sachin Katti to the combined role of CTO and Chief AI Officer, consolidating leadership after the retirement of tech chief Ann Kelleher in March. This move is central to Tan’s vision of a more focused and competitive Intel.
To enforce discipline, Intel is cutting its 2025 operating expense target by $500 million and has lowered its capital expenditure forecast by $2 billion. Tan’s management philosophy is clear, as he told staff, “I’m a big believer in the philosophy that the best leaders get the most done with the fewest people.”, signaling a move towards a leaner, more agile corporate structure.
Foundry Failures and Financial Fires
The restructuring is driven by severe financial strain and competitive setbacks. The 18A process, featuring next-gen RibbonFET transistors and PowerVia backside power delivery, was meant to be the cornerstone of Intel Foundry Services (IFS). Its failure to attract external clients was a major blow, leaving Intel as the node’s only relevant customer.
This stumble forces a pivot to the 14A process, which won’t be ready for mass production until late 2027 at the earliest. The delay raises serious questions about Intel’s execution and could result in a multi-billion dollar write-off on its 18A investments.
The pressure is not just internal. Rival TSMC’s CEO C.C. Wei explicitly shut down any speculation of a partnership in April, stating, “TSMC is not engaged in any discussion with other companies regarding any joint venture, technology licensing or technology.” This public denial leaves Intel to navigate its path forward alone, without a lifeline from its chief competitor.
This reality has forced a radical shift in Intel’s mindset. In a departure from its vertically integrated identity, Michelle Johnston Holthaus, Intel’s Chief Executive of Products, admitted the company is no longer committed to using only its own factories. For future products, she said, “Yes. Of course, I want it to be on an Intel Foundry, but if it doesn’t deliver the best product, I’m not going to build it there.”
This admission is a dramatic break from Intel’s historical identity as a self-reliant powerhouse. It underscores the immense challenge ahead. With the 18A process struggling and the 14A node years away, Tan’s overhaul is a high-stakes bet on creating what he calls “The New Intel”. Success now depends on finally executing on its ambitious, and newly pragmatic, plans.
