[News] Intel Cuts Intel 3, 18A Costs by ~15%, ~40% Since 1Q; Confirms Nova Lake to Use 18A-P

While Intel warned at last week’s earnings call that sluggish PC demand could persist into the first half of 2027, its server and client CPU business continued to gain momentum, alongside improving yields and costs at its advanced nodes. According to a Benzinga transcript, CFO Dave Zinsner said costs for Intel 3 and Intel 18A had fallen roughly 15% and 40%, respectively, since the first quarter, with yields also trending higher.

On the client side, Zinsner, per Benzinga, revealed that 18A-based processors now account for nearly one-third of client CPU revenue, up from less than 5% in the first quarter. Demand is particularly strong for Wildcat Lake, its cost-optimized 18A processor, with silicon unit volumes rising 70% sequentially and available supply already sold out, Benzinga reports.

Notably, despite the growing traction for 18A-based client CPUs, Intel is shifting some of its Oregon capacity toward Intel 3 to prioritize data center demand. According to GuruFocus, citing Zinsner, the affected 18A wafers were largely earmarked for Panther Lake. The move is expected to free up capacity for more server CPU wafers, though substrate supply remains another bottleneck.

Beyond the capacity reshuffle, Intel is also making headway with its 18A server portfolio. CEO Lip-Bu Tan said Clearwater Forest, the company’s first 18A server product, is already shipping for revenue, with significant demand expected in 2027, particularly for CPU-dense, rack-scale infrastructure.

The growing traction for Intel 18A comes alongside further yield improvements. According to The Guru of 3D, Intel reported double-digit yield improvements for the node during the third quarter, reinforcing progress in its manufacturing ramp.

Intel Maps Out 18A-P, 14A Roadmap

Looking beyond its current 18A ramp, Intel is laying the groundwork for its next-generation server CPUs. According to Benzinga, CEO Lip-Bu Tan confirmed that Diamond Rapids, slated for 2027, will use Intel 18A-P, while its successor, Coral Rapids, is expected to adopt Intel 14A in 2028.

On the client front, Intel’s upcoming Nova Lake desktop processors will mark the debut of 18A-P, according to Tom’s Hardware. Tan said the chip is progressing ahead of schedule, with launch design wins projected to double those of Panther Lake. More details are expected at CES in January 2027.

Interestingly, Tom’s Hardware also notes that speculation over Nova Lake’s manufacturing strategy has intensified, with market chatters pointing to both Intel 18A and TSMC’s N2P. The latest rumors suggest a split-node approach, pairing Intel 18A-P for the SoC tile with TSMC N2P for the compute tile. However, using Intel’s most advanced process for the SoC tile rather than the compute tile would be an unconventional choice, leaving the rumored configuration open to question, the report adds.

Building on the 18A node already powering Panther Lake and Wildcat Lake, Intel 18A-P delivers a 9% performance boost at the same power or an 18% reduction in power consumption at equivalent speeds, according to Tom’s Hardware.

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(Photo credit: Intel)