NuAxiSemiconductor trade intelligence

[News] Intel Cuts Intel 3, 18A Costs by ~15%, ~40% Since 1Q; Confirms Nova Lake to Use 18A-P

What happened

Reported 2026-11-02 (earnings call): Intel CFO Dave Zinsner said costs for Intel 3 and Intel 18A had fallen roughly 15% and 40%, respectively, since the first quarter, with yields also trending higher. 18A-based processors now account for nearly one-third of client CPU revenue, up from less than 5% in the first quarter. Demand is particularly strong for Wildcat Lake, Intel's cost-optimized 18A processor, with silicon unit volumes rising 70% sequentially and available supply already sold out. Intel is shifting some of its Oregon capacity toward Intel 3 to prioritize data center demand; the affected 18A wafers were largely earmarked for Panther Lake, and the move is expected to free up server CPU wafer capacity, though substrate supply remains another bottleneck. CEO Lip-Bu Tan said Clearwater Forest, Intel's first 18A server product, is already shipping for revenue, with significant demand expected in 2027. Intel reported double-digit yield improvements for 18A during the third quarter. Roadmap: Diamond Rapids, slated for 2027, will use Intel 18A-P, while its successor Coral Rapids is expected to adopt Intel 14A in 2028; Nova Lake desktop processors will mark the debut of 18A-P, progressing ahead of schedule with launch design wins projected to double those of Panther Lake, and more details expected at CES in January 2027. Market speculation (rumor) suggests Nova Lake may use a split-node approach pairing Intel 18A-P for the SoC tile with TSMC N2P for the compute tile, a configuration the report leaves open to question. Per Tom's Hardware, Intel 18A-P delivers a 9% performance boost at the same power or an 18% reduction in power consumption at equivalent speeds. Intel had warned that sluggish PC demand could persist into the first half of 2027.