Intel's next-generation processors will be produced at over 70% of its own factories, freeing it from reliance on TSMC and allowing it to add memory, which could be a lifesaver in the face of adversity such as its exclusion from the Dow Jones Industrial Average and its struggles with AI chips.

Intel plans to release its laptop processor 'Panther Lake' in 2025 and its desktop processor 'Nova Lake' in 2026. During a conference call held in conjunction with the announcement of the third quarter 2024 financial results , it was revealed that most of Panther Lake and Nova Lake will be produced at Intel's own factories. At the same time, it was also revealed that the memory specifications for laptop processors will be changed and the reason for the failure to achieve sales targets for AI chips.

Intel Reports Third-Quarter 2024 Financial Results :: Intel Corporation (INTC)
https://www.intc.com/news-events/press-releases/detail/1716/intel-reports-third-quarter-2024-financial-results

Intel Corporation (INTC) Q3 2024 Earnings Call Transcript | Seeking Alpha
https://seekingalpha.com/article/4731858-intel-corporation-intc-q3-2024-earnings-call-transcript

◆Increase the proportion of production at our own factories to break away from dependence on TSMC
At the time of writing, Lunar Lake , Intel's flagship processor for notebook PCs, is produced at TSMC's factories. Regarding Panther Lake, which is being developed as the next notebook processor, Intel CEO Pat Gelsinger said, 'More than 70% of Panther Lake will be produced at Intel's factories,' indicating a direction to reduce dependence on TSMC. He also said about the next desktop processor, Nova Lake, 'We are considering outsourcing some of it, but the majority of Nova Lake will be produced in-house.'

Intel reported successful production of Panther Lake at its own factories in August 2024. Intel plans to begin mass production of Panther Lake in 2025, and has revealed that it will also produce semiconductors for other companies using the production technology 'Intel 18A' used to produce Panther Lake.

Intel announces that '18A' chip development is progressing smoothly, with the first third-party products expected to be taped out in the first half of 2025 - GIGAZINE

Regarding the relationship with TSMC, CEO Gelsinger said, 'TSMC is a great partner' and 'We value our relationship with TSMC,' but a few days before the conference call, it was reported that 'price negotiations with TSMC were withdrawn due to CEO Gelsinger's remarks in 2021.'

It turns out that Intel CEO Pat Gelsinger's remarks about Taiwan angered TSMC and caused it to lose price discounts - GIGAZINE

◆ Memory can now be expanded by eliminating the built-in memory method for notebook PC processors
Since the Lunar Lake generation processor has built-in memory in addition to the CPU, GPU, and NPU, it is not possible to add or replace memory in a Lunar Lake-equipped laptop. According to CEO Gelsinger, the design method of including memory in the package is a one-time thing for Lunar Lake. For generations after Panther Lake and Nova Lake, the design will be as usual without including memory in the package.

◆ AI chip 'Gaudi 3' falls short of target
Intel released the AI chip 'Gaudi 3' in the third quarter of 2024. Intel planned to earn $500 million (about 76 billion yen) in revenue from Gaudi 3 alone by the end of 2024, but failed to achieve its goal. CEO Gelsinger explained that the reason for the failure to achieve the goal was that 'the product transition from Gaudi 2 to Gaudi 3 and the difficulty of using the software affected the adoption rate.'

Intel announces AI accelerator 'Gaudi 3', which is faster and consumes less power than NVIDIA's H100 and even beats the H200 in some tests - GIGAZINE

Intel to be removed from the Dow Jones Industrial Average
Intel was adopted as one of the 30 stocks that make up the Dow Jones Industrial Average (Dow Average) in 1999 and has maintained its position as a constituent stock for the past 26 years. However, Dow Jones announced that it will remove Intel from the list of constituent stocks and replace it with NVIDIA on November 1, 2024. Dow Jones explained that the reason for the change in constituent stocks is 'to better reflect the semiconductor industry, etc.' The change in constituent stocks will be implemented on November 8, 2024.