Intel Diverts 18A Capacity From Panther Lake to Meet Xeon Demand

Intel is moving some manufacturing capacity away from consumer chips to keep up with demand for its Xeon server processors. During its Q3 2026 earnings call, the company said it will convert some Intel 18A resources at its Oregon facilities to Intel 3, the node behind Xeon 6 "Granite Rapids." 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.

Intel CEO Lip-Bu TanThe industry continues to navigate one of the most significant supply shortages in the history, driven by the unprecedented demand for Super Intelligence. Against this backdrop, I am pleased by the progress we made growing our server supply in Q3. I'm mindful about the ongoing challenges we face in the future quarters to keep pace with the server demand.

Read full story