The new strategy for Intel's foundry business would mean offering outside customers a newer generation of technology, two people familiar with the matter told Reuters.

Intel’s new CEO Lip-Bu Tan is planning to reallocate resources to the 14A chipmaking process, aiming for an advantage over TSMC.

In addition, Intel faces external pressures. Earlier this year, the U.S. government was reportedly pressing hard for Intel to create some kind of joint venture with TSMC, but the Taiwanese chip giant ended months of speculation in April when it explicitly ruled out such a move.