Intel unveils key AI PC chip at CES: debut of 18A process + 60% performance boost, company set to face a "strategic turning point"

Intel officially launched its AI PC chip series based on the 18A process at CES, which is considered a key milestone in the company’s manufacturing revival and technological leadership. The new generation of chips adopts breakthrough transistor architecture and power supply design. This marks Intel’s first large-scale mass production using the 18A process and is intended to reclaim market share lost to AMD, proving that its foundry business has returned to the forefront of technological competition.

The newly released Intel Core Ultra Series 3 processors are the first products featuring the Panther Lake architecture. Laptops equipped with these chips will be available for pre-order on January 7th, with global sales starting simultaneously on January 27th. Intel Senior Vice President Jim Johnson revealed at the event that the new-generation chips offer up to 60% performance improvement over the previous Lunar Lake Series 2.

Intel CEO Pat Gelsinger emphasized that the company has “fulfilled its promise to deliver the first batch of 18A process products by 2025.” Johnson further pointed out, “2026 will be a strategic turning point for both the industry and Intel,” hinting that technology iteration and market dynamics will enter a new phase.

It is worth noting that Intel’s previous Lunar Lake chips were mainly manufactured by TSMC. Although Panther Lake faced yield challenges during early development, company management stated that yield rates have shown significant month-on-month improvement.

Two Major Technological Breakthroughs with 18A Process

Intel’s 18A process integrates two key technologies that the company calls industry breakthroughs. First, an innovation at the transistor level: 18A products will introduce “gate-all-around” technology for the first time, which enables more precise control over the transistor switching process. In modern chips, tens of billions of transistors are integrated within a tiny area, and improving switching efficiency is critical to reducing overall power consumption.

This breakthrough lays the foundation for developing chips with higher transistor density, stronger data throughput, and improved energy efficiency. Intel Senior Vice President Jim Johnson further revealed that the company has successfully developed an independent graphics processing unit (GPU) chiplet, which can be integrated with other functional chiplets via advanced packaging technology to create more flexible and high-performance processor solutions.

Additionally, Intel plans to launch a handheld gaming device platform based on the Panther Lake architecture within 2025. Johnson noted that the market acceptance of handheld PC devices designed by multiple suppliers has been steadily increasing in recent years. The company expects to announce specific partners and product details related to the platform later this year.

Foundry Business Faces a Critical Test

The market performance of the new products is crucial to Intel’s strategic plan to transform into a major global foundry. The company is striving to manufacture chips for external customers, carving out competitiveness in an industry dominated by TSMC and closely followed by Samsung Electronics. Notably, Intel itself continues to outsource some advanced process production to TSMC, reflecting its recognition of TSMC’s current technological strength.

While Intel has made clear it will maintain cooperation with TSMC in some areas, its self-developed product line based on the 18A process marks a strategic effort to bring high-end chip manufacturing back in-house. This move is critical for Intel to win custom chip contracts—a nascent but vital business for its foundry’s long-term development—and serves as an important test for its technological independence and manufacturing competitiveness.

It is notable that, with U.S. government support and major equity purchases from Nvidia and SoftBank Group, Intel’s stock price has recently rebounded.

Rivals Compete on the Same Stage

AMD is scheduled to deliver a keynote at CES at 9:30 PM EST on Monday. CEO Lisa Su is expected to unveil the next-generation PC chips targeting AI computing and graphics processing.

Of note, AMD recently announced a multi-billion-dollar long-term cooperation agreement with OpenAI for its next-generation MI400 chips. Under the agreement, some MI400 chips will begin deployment this year, and the partnership is expected to bring AMD tens of billions of dollars in cumulative revenue over the coming years.

Meanwhile, Nvidia CEO Jensen Huang also spoke at CES on Monday. He revealed that Nvidia’s next-generation chips have entered the “full mass production” stage, and their computational performance—while running large language models and generative AI applications—can reach five times that of previous products.

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