Intel's Nova Lake to Debut on Upgraded 18A-P Process

Intel will manufacture its next-generation Nova Lake desktop processors on an upgraded 18A-P process, the company said during its third-quarter 2026 earnings report. Lip-Bu Tan, Intel's chief executive, confirmed that Nova Lake will be the first consumer product family to use the enhanced 18A-P node and said the company will share further architectural details at CES in December.

According to Intel, development of the new node has progressed faster than expected, and early partner interest in designs for the platform is roughly double that seen for the previous generation. The company says 18A-P improves on the standard 18A used for Panther Lake and Wildcat Lake by offering either a 9 percent performance uplift at the same power or an 18 percent reduction in energy use at the same performance. Intel engineers describe 18A-P as a direct replacement for standard 18A that can boost chip efficiency without requiring a redesign.

Capacity shifts and market headwinds

Intel's finance team also disclosed a reallocation of some wafer capacity originally intended for consumer chips toward data-center processors. David Zinsner, Intel's chief financial officer, confirmed that part of the capacity producing consumer wafers will be repurposed to build Granite Rapids server processors. Zinsner warned that the PC market outlook is weak: "We expect the total addressable PC market in 2026 to decline by about 12 percent, with that decline exceeding 20 percent in the second half of the year. We do not expect a sustained recovery until memory availability improves and pricing normalizes. For 2027, we expect an approximate 10 percent decline."

Intel attributed the market contraction in part to rising component prices and a shortage of memory, factors that have prompted enterprise buyers and major OEMs to scale back heavy investments. Zinsner reiterated that the company is adjusting production plans in response, including shifting some 18A wafer capacity to support server products.