At the last quarterly conference, Intel was forced to tie its success in mastering new lithographic standards to the dynamics of financial indicators, and explain their mutual dependence. Lunar Lake processors are being introduced to the market ahead of schedule, but they will be produced almost entirely at TSMC facilities, and only with the transition to Intel 18A technology will the company regain the ability to have more influence on the cost of its processors.
Image source: Intel
In the current quarter, deliveries of Lunar Lake processors will be carried out in large quantities, since their announcement is scheduled for September 3rd. These chips will be designed for use in thin and light laptops. The latter will meet the requirements for Copilot+ PC, which will allow systems of this family to accelerate the work of artificial intelligence using the hardware resources of central processors.
«Lunar Lake will be the best AI processor on the shelves by the fall sales season. Microsoft has approved its use in more than 80 Copilot+ PC models from more than twenty brands that will begin shipping this quarter. Lunar Lake will soon be joined by Arrow Lake processors, which will provide AI support for the desktop category in the next quarter,” Intel CEO Patrick Gelsinger said at the reporting event.
Since all three crystals included in the Lunar Lake processors will be produced by TSMC, and Intel itself will only place them in the case and test them, it will not have any special leverage to influence the cost during the release of processors of this family, which was reported at the quarterly event by company representatives. “While this product is great, it was originally targeted at a niche market using primarily outsourced silicon wafers and was not optimized for cost,” explained Intel CFO David Zinsner.
However, the event was not without good news, traditionally related to the not very distant, but still future. Intel already has, according to management, working samples of Panther Lake client processors and Clearwater Forest server processors, which it will produce independently using Intel 18A technology. The company intends to introduce client Panther Lake in the second half of next year. As Gelsinger explained, the transition to the Intel 18A process will allow the company to begin returning processed crystals to its pipeline for greater cost control. According to the head of Intel, this will “significantly increase the overall profitability of the business.”
For the data center segment, Intel is preparing Clearwater Forest processors, which will hit the market after Panther Lake, but will also be manufactured using Intel 18A technology at the company’s own facilities. According to the head of Intel, the first samples of Clearwater Forest demonstrate impressive characteristics. The Foveros Direct Packaging technology used in their production will provide significant cost savings, including operating costs, starting next year.