Intel Reportedly Cancels Glass Substrate Project as CEO Lip-Bu Tan Pursues Aggressive Restructuring of Foundry Division

Intel’s new CEO, Lip-Bu Tan, appears to be making decisive changes to the company’s direction, particularly in its foundry and semiconductor operations. According to a report from ComputerBase, Intel has halted its in-house glass substrate development, signaling a broader effort to trim down non-core operations and recalibrate its long-term strategic priorities.

Intel Steps Back From In-House Glass Substrate R&D

Intel has long been considered a leader in glass substrate technology, with years of internal R&D investments putting it ahead of the curve. However, the new leadership under Lip-Bu Tan has reportedly decided to abandon this self-reliant approach in favor of outsourcing glass substrate needs to external partners. While glass substrates are expected to play a critical role in next-generation packaging and chip stacking, Intel's exit from direct development reflects a shift toward cost efficiency and operational focus on core offerings.

Foundry Strategy Realignment and 18A Limitations

This latest move aligns with Intel’s broader plan to scale back its foundry ambitions, particularly as its Intel 18A process node has suffered delays and limited traction with external customers. Previously touted for offering 25% higher frequency at the same power, or 36% lower power at the same frequency compared to Intel 3, the 18A process will now be focused primarily on internal products like the upcoming Panther Lake and Clearwater Forest chips. External sales of 18A are reportedly being deprioritized, cutting back operational overhead within the foundry business.

Despite this, Intel has not exited the race entirely. The company is still preparing its 14A node, which it sees as having greater competitive potential against TSMC. However, success will depend on achieving high-volume external adoption—something that remains uncertain given current restructuring.

Lip-Bu Tan’s Restructuring Mandate

Since taking over as CEO, Lip-Bu Tan has made it clear that difficult decisions are necessary to bring Intel back to a position of market leadership. As a seasoned semiconductor executive and founder of Walden International, Tan brings a pragmatic approach to innovation and cost control. Industry watchers note that rumors of Intel spinning off its foundry division have intensified since his appointment—adding further uncertainty to the future of Intel Foundry Services (IFS).

Tan’s restructuring appears focused on sharpening Intel’s CPU and core manufacturing divisions, with less emphasis on speculative or resource-heavy R&D projects like in-house glass substrates. The move also suggests that Intel will prioritize profitability and operational efficiency over breadth, at least in the near term.

What’s Next for Intel?

While Intel remains a critical player in the global semiconductor ecosystem, the scaling back of projects like glass substrates and reduced external ambitions for 18A raise questions about its ability to compete with TSMC and Samsung in the foundry space. However, the company’s long-term roadmap still includes strategic bets on advanced nodes, AI integration, and packaging technologies.

Until Intel delivers an updated public roadmap or strategic guidance, the industry will continue to speculate on whether this is a tactical retreat or a sign of deeper reorganization to come.

What do you think about Intel’s decision to cut back on foundry operations and cancel the glass substrate project? Is this a smart refocus, or a retreat from innovation? Share your views below.