Intel delays key Xeon data center processor amid massive losses — Clearwater Forest pushed back to 1H 2026
Intel on Thursday said that its codenamed Clearwater Forest processor for data centers will only be launched in the first half of 2026, roughly two years after the company introduced its Xeon 6-series CPUs and one or two quarters behind schedule. By contrast, Intel’s Panther Lake product for client PCs — which uses the same 18A process technology — is on track for a 2H 2025 launch.
The delay of the key server processor comes amid the company’s unveiling of Intel’s financial results for the fourth quarter of 2024 and the entire year, which revealed massive losses. Paired with Intel’s announced cancellation of its Falcon Shores AI GPUs, Intel’s competitive posture for the exploding AI market is now severely weakened.
Clearwater Forest delayed
Michelle Johnston Holthaus, interim co-CEO of Intel, during the company’s earnings call on Thursday, said :
We are also making good progress on Clearwater Forest, our first Intel 18A server product that we plan to launch in the first half of next year,
Holthaus cited difficulties with Clearwater’s packaging technology but said the underlying 18A process node remains strong.
Currently, Intel is ramping up production of its energy-efficient Xeon 6 ‘Sierra Forest’ and high-performance Xeon 6 ‘Granite Rapids’ processors. It believes that these CPUs will be instrumental in stabilizing its market share this year. However, with the next-generation Xeon 7-series ‘Clearwater Forest’ and Xeon 7 ‘Diamond Rapids,’ Intel probably expects to turn the tables and start regaining market share.
However, there may be a setback to this plan, as Intel originally promised to launch Clearwater Forest in 2025, but it now says that the new CPUs will be released in the first half of 2026. The delay will affect Intel’s competitive position in the data center market and postpone potential design wins with interested parties.
Clearwater Forest holds additional significance for Intel, as this is the first data center CPU with compute chiplets manufactured on the Intel 18A process technology (1.8nm-class) and featuring a Foveros 3D base die fabbed on the Intel 3 production node. If the company can mass-produce Clearwater Forest cost-effectively, it will be a major testament to its 18A manufacturing process—which happens to be the first technology developed both for Intel and its foundry customers—as a success. This could also attract potential clients to Intel Foundry. For now, Intel is optimistic about 18A.
David Zinsner, interim co-CEO and chief financial officer of Intel, during the call, said :
18A has been an area of good progress,
“Like any new process, there have been ups and downs along the way, but overall, we are confident that we are delivering a competitive process.”
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Intel delays key Xeon data center processor amid massive losses — Clearwater Forest pushed back to 1H 2026, source
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