Intel is making a significant U-turn on its laptop chip design, abandoning the on-package memory introduced in its Lunar Lake laptops. According to CEO Pat Gelsinger, the company will return to traditional memory sticks in future generations, including Panther Lake and Nova Lake. This decision comes after Gelsinger admitted that the on-package memory approach was a financial mistake.

The move is a surprising reversal, given that Intel had touted the on-package memory as a competitive advantage for laptop battery life. However, Gelsinger revealed that Lunar Lake was initially designed as a niche product, but it became a high-volume product with the rise of AI PCs. The company's reliance on external partners for memory chips and wafers from rival TSMC also contributed to the decision.

In another significant development, Gelsinger hinted that Intel may abandon its desktop GPU efforts, citing a focus on simplifying consumer products and a decreasing need for discrete graphics in the market. This move would not be entirely unexpected, given the limited success of Intel's gaming graphics initiative. The company's Arc graphics efforts, however, will continue to influence its laptop chip designs.