Intel might give up making its own gaming CPUs in-house due to costs, says CEO

The future of internal Intel CPU production is at risk, as the company has confirmed that if it fails to find external customers for its future 14A (1.4nm) semiconductor manufacturing process, then it will slow or shut the whole thing down. This would force the company to rely on third-party foundries to produce its next-gen CPUs, ending decades of in-house production.

If Intel abandons its 14A process node, then companies such as TSMC and Samsung would then be in a position to leapfrog ahead with superior production foundries. Intel is already facing an uphill battle against its competitors, especially when it comes to gaming CPU performance, as our best gaming CPU guide shows.

This warning came as Intel executives discussed the company's performance in a recent earnings call. Intel's chief executive, Lip-Bu Tan, told investors in that call that in order for 14A to succeed, he will need to see "internal customer, external customer, and volume commitment" guarantees for the process.

Intel's latest quarterly report goes further, with the company warning that it "may not be economical" to continue with 14A development if it can't "secure a significant external customer" and that Intel "may pause or discontinue [its] pursuit of Intel 14A" as a result.

With heavy layoffs, a plunging share price, and the recent firing of its previous CEO, Intel is clearly struggling at the moment. Gamers have seen that for themselves in one key part of Intel's market, with Intel's newest Arrow Lake CPUs failing to keep up with AMD's best, such as the AMD Ryzen 7 9800X3D. Intel has been unable to counter the performance boost provided by AMD's 3D V-Cache technology, even if rumors of an Intel CPU using 3D V-Cache style tech are promising.

One CPU isn't going to change the company's fortunes, however, and the company is clearly thinking about its long-term spending commitments. If Intel can't find the necessary customers to keep its 14A process node alive, its only option is to outsource all its future production to competitors such as TSMC.

It wouldn't be entirely unprecedented, either. Intel already outsources some of its production to TSMC, including parts of its Arrow Lake CPUs, but abandoning it entirely would represent a serious loss of prestige for the company.

In that scenario, rather than being a cutting-edge silicon manufacturer, it becomes a customer, forced to queue up behind AMD, Nvidia, and others for another company to produce its chips. No longer an elite manufacturer in its own right, Intel's relatively dominant position in the industry, including its market share, could face greater pressures as a result.

With any luck, the next generation of Intel CPUs will be competitive for gamers, regardless of how it makes them. Until then, make sure to check out our Intel Core Ultra 265K review to see why Intel's most recent lineup failed to impress us on launch day. Our best gaming PC guide is filled with options from both Intel and AMD if you're thinking about switching to a new rig, too.

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