Intel shifts 18A capacity from Panther Lake to Xeon chips

Intel is moving some of its 18A manufacturing capacity away from Panther Lake consumer chips to produce more data center wafers. CFO David Zinsner confirmed the company is converting part of its 18A capacity in Oregon to Intel 3, the node used for the current Xeon 6 lineup. Intel says the move responds to high Xeon demand and slow Panther Lake laptop sales.

Image: Hardware Busters

The company reported Q3 2026 total revenue of $16.5 billion, a 21% increase year over year. Data Center and AI revenue grew 78% to $7.3 billion, while the Client Computing and Physical AI segment fell 5% to $8.1 billion. Zinsner noted that the budget-focused 18A Wildcat Lake part saw unit sales increase by approximately 70% sequentially and is currently sold out.

Chief executive Lip-Bu Tan noted that personal computers face a difficult period ahead. Intel expects this slowdown to last at least through the first half of 2027 due to DRAM and NAND pricing. While Intel is adding more data center wafers, the company said Xeon output remains limited by substrate supply. Intel also guided Q4 revenue to between $15 billion and $16 billion, with non-GAAP gross margin expected to fall to about 38% from 44.1%.