Intel has announced a delay in the launch of its key Xeon data center processor, codenamed Clearwater Forest, pushing it back to the first half of 2026. The processor, which was initially expected to debut in 2025, is now facing setbacks due to challenges with its packaging technology. Michelle Johnston Holthaus, interim co-CEO of Intel, assured that the underlying 18A process node remains robust despite the delay.
Clearwater Forest is highly significant for Intel as it includes compute chiplets made on the 18A process technology and features a Foveros 3D base die. The postponement comes amidst significant financial losses for the company. Intel’s 2024 financial results revealed a net loss of $18.8 billion, a stark contrast from the previous year’s $1.7 billion profit.
Fourth-quarter 2024 results showed $14.3 billion in revenue, up from the previous quarter but down year-over-year, and a $100 million loss compared to a $2.7 billion profit in Q4 2023. Intel’s various business segments experienced mixed results.
Intel delays key processor launch
The Client Computing Group saw revenue increase to $8 billion but experienced a drop in operating income. The Data Center and AI Group reported $3.4 billion in revenue, with profitability hitting an all-time low. The Networking and Edge Computing business and Intel Foundry recorded modest improvements in some areas.
Despite the setback, Intel is ramping up production for its energy-efficient Xeon 6 ‘Sierra Forest’ and high-performance Xeon 6 ‘Granite Rapids’ processors. These are expected to help stabilize the company’s market share this year. The next-generation Xeon 7-series ‘Clearwater Forest’ and Xeon 7 ‘Diamond Rapids’ remain essential to Intel’s strategy to regain market share.
Intel forecasts first-quarter 2025 revenue between $11.7 billion and $12.7 billion and expects a GAAP gross margin decline to 36%. The company remains optimistic about its 18A process technology, with David Zinsner, interim co-CEO and CFO, stating, “18A has been an area of good progress.” Intel envisions solid execution in the coming years to leverage its new fabs and production capacities.
Johannah Lopez is a versatile professional who seamlessly navigates two worlds. By day, she excels as a SaaS freelance writer, crafting informative and persuasive content for tech companies. By night, she showcases her vibrant personality and customer service skills as a part-time bartender. Johannah's ability to blend her writing expertise with her social finesse makes her a well-rounded and engaging storyteller in any setting.
