Intel's 'Panther Lake' CPUs stay on monitor amid huge layoffs

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Intel stated Thursday that the corporate’s subsequent large CPU wager, Panther Lake, stays on monitor to start transport this 12 months, and the supporting 18A manufacturing course of has already entered manufacturing. Nonetheless, Intel plans to finish 2025 with simply 75,000 staff because it continues lowering its workforce.

Intel chief govt Lip-Bu Tan additionally characterised Intel’s transfer away from hyperthreading, begun with its “Arrow Lake” chip, as a mistake.

As Intel reported earnings for the second quarter of 2025, the corporate’s message was that it continues to execute on a method to concentrate on prospects and engineering. As a part of that, Intel recorded $1.9 billion in restructuring fees, largely to do with reorganizing manufacturing and meeting operations.

“I do know the previous few months haven't been simple,” Intel chief govt Lip-Bu Tan wrote in a memo to staff. “We're making exhausting however essential selections to streamline the group, drive higher effectivity and improve accountability at each degree of the corporate.”

Tan’s objectives are to “right-size” the corporate’s workforce and maintain them to account, by each trimming headcount and thinning the ranks of center administration. Tan additionally stated that the corporate is slowing the event of its Ohio chip fab — which was funded partly by the CHIPS Act, signed through the Biden administration. Intel plans to consolidate its meeting and take a look at operations in Costa Rica to bigger websites in Vietnam and Malaysia, and never go ahead with “initiatives” in Poland and Germany. Intel was rumored to presumably shutter operations in Israel, however that hasn’t occurred. Tan known as Intel’s manufacturing facility technique “needlessly fragmented” in a convention name with analysts.

Intel’s chip roadmap is on monitor

Tan, nonetheless, appears to be utterly behind Intel’s present product roadmap, which is centered on Intel’s next-generation Panther Lake chip and the supporting 18A course of. He known as the 18A course of (and a associated 18A-P course of) “the inspiration of no less than the subsequent three generations of Intel consumer and server merchandise,” Tan stated, delivering significant wafer volumes into the subsequent decade.

“Panther Lake is our prime precedence as it would reinforce our power in notebooks throughout client and enterprise,” Tan instructed staff. “We additionally should drive continued progress on Nova Lake to shut gaps within the high-end desktop house.”

The primary Panther Lake processor stays on monitor to start transport later this 12 months, with further merchandise coming within the first half of 2026, Intel stated.

Tan stated that he'll log out on each new main product earlier than it tapes out. Tan additionally stated in an analyst name that he was not a believer in “when you construct it, they'll come.” As an alternative, Intel will construct what prospects need, once they want it, he stated.

Curiously, Tan additionally criticized Intel’s choice to remove hyperthreading, often known as simultaneous hyperthreading (SMT). Although he addressed this as a problem within the information middle, it is going to be attention-grabbing to see whether or not Intel makes an identical choice to return hyperthreading to its desktop and consumer chips, as properly.

“Transferring away from SMT put us at a aggressive drawback,” Tan stated. “Bringing it again will assist us shut efficiency gaps.”

Lastly, Intel will transfer away from a strictly silicon-based method to AI. “We are going to focus our AI efforts on growing a cohesive silicon, system, and software program stack technique,” Tan stated.

“We've loads to repair to maneuver the corporate ahead, Tan stated. “And I’m decided to drive the adjustments essential to enhance our efficiency.”

Intel misplaced $2.9 billion for the second quarter, beneath the GAAP methodology, recording flat income of $12.9 billion. Intel’s outlook, nonetheless, was higher than anticipated: $12.6 billion to $13.6 billion, which was greater than what Wall Avenue anticipated. Intel’s Consumer Computing Group revenues fell 3 p.c versus the identical quarter in 2024, right down to $7.9 billion.

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Intel’s ‘Panther Lake’ CPUs stay on monitor amid huge layoffs

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