Intel Diverts 18A Capacity From Panther Lake to Meet Xeon Demand
What happened
During its Q3 2026 earnings call, Intel said it will convert some Intel 18A resources at its Oregon facilities to Intel 3, the node behind Xeon 6 "Granite Rapids," to keep up with demand for its Xeon server processors. According to CFO Dave Zinsner, those 18A wafers "are generally going to build Panther Lake products." Zinsner also indicated that weaker PC demand gives Intel room to make the switch, as the company expects the PC slowdown to last at least through the first half of next year. CEO Lip-Bu Tan said the added Intel 3 capacity should be in production in the second half of 2027. Tan also noted that the industry continues to navigate one of the most significant supply shortages in history, driven by unprecedented demand for "Super Intelligence"; he was pleased by the progress growing server supply in Q3 but is mindful of ongoing challenges in future quarters keeping pace with server demand. The capacity conversion is in a planned status.
Impact and signal
Affected components and suppliers
Source and time
Source: TechPowerUp · 10/31/2026 · View original source
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