Intel’s Core Ultra Chip: Hot or Not?

Intel’s CEO Pat Gelsinger recently announced that the Core Ultra laptop chip is selling like hotcakes, but the company’s latest forecasts fell below expectations. During the earnings call with analysts, Intel predicted revenues for the next quarter to be between $12.5B to $13.5B, which was lower than the projected $13.61B. While revenues for the first quarter of 2023 were up by 9%, the numbers indicate a mixed performance for Intel.

Gelsinger expressed optimism about Intel’s roadmap, highlighting the success of the Core Ultra chip, also known as Meteor Lake. He mentioned that Intel is expected to ship double the number of Core Ultra CPUs in Q2 compared to Q1, attributing the growth to improved manufacturing capabilities. Despite the positive outlook, there are concerns about Intel’s ability to deliver on its promise to introduce five new chip production nodes in four years.

While Intel’s roadmap shows progress with upcoming products like Arrow Lake and Panther Lake, which are based on new nodes such as Intel 20A and Intel 18A, there are doubts about the company’s ability to scale production volumes. The roadmap indicates that Intel may not significantly increase volumes on its latest nodes until 2026, raising questions about the true impact of products like Meteor Lake and Arrow Lake in the short term.

Intel’s focus on closing the technology gap and regaining customer trust is commendable, but the challenges ahead are significant. The company needs to prove its ability to scale production on new nodes and meet the market demand for innovative products. While Intel’s efforts to accelerate node transitions are promising, the reality of achieving high volume production on advanced nodes remains a key area of concern.

Intel’s Core Ultra chip may be generating buzz in the industry, but the company still has a long way to go in proving its capabilities. The roadmap for Intel’s foundry business suggests that the transition to new nodes will take time, emphasizing the need for sustained efforts to drive innovation and meet market expectations. As Intel continues to navigate the challenges of the semiconductor industry, the success of products like Meteor Lake will ultimately depend on the company’s ability to deliver on its promises and demonstrate sustainable growth in the long run.