Intel recently announced that several of its contract manufacturing customers are moving forward with building test chips using its upcoming advanced process technology, signaling renewed interest in its foundry business. This update came during the company’s Direct Connect conference, where CEO Lip-Bu Tan-who took the helm in March 2025 emphasized his commitment to revitalizing Intel’s foundry operations and asked customers for candid feedback to help drive improvements.
Tan’s leadership marks a strategic shift for Intel, focusing on rebuilding trust and competing directly with industry leader TSMC. He confirmed that Intel is fully committed to making its foundry business successful, acknowledging that there are still areas that need improvement. One of the key innovations in Intel’s roadmap is the introduction of high-numerical-aperture extreme ultraviolet (high-NA EUV) lithography machines as part of the forthcoming 14A process node. This technology, alongside new power delivery methods, could streamline chip manufacturing, although it introduces some technical risks.
Intel’s 18A process node, which is now in risk production, is central to the company’s turnaround strategy. The 18A process is Intel’s first to use RibbonFET gate-all-around transistors and PowerVia backside power delivery, delivering significant improvements in performance, power efficiency, and transistor density. For example, 18A technology offers up to 25% better performance and 36% lower power consumption compared to Intel’s previous Intel 3 process, with area scaling improvements of about 28%. Intel also introduced new variants, 18A-P and 18A-PT, which provide enhanced performance options and support for advanced 3D chip stacking technologies like Foveros Direct.
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Major chip designers, including Nvidia and Broadcom, are currently testing Intel’s 18A process, indicating growing confidence in Intel’s advanced manufacturing capabilities. These companies are evaluating whether to commit substantial manufacturing contracts to Intel, a move that could provide both a revenue boost and a critical endorsement for Intel’s foundry ambitions. Intel’s manufacturing ramp for 18A is starting at its Oregon R&D lab, with Arizona fabs expected to scale up production later in 2025.
Looking ahead, Intel has already started engaging customers on its next-generation 14A process, distributing early design kits and planning test chips. The company is also expanding its packaging technologies, introducing new 3D stacking solutions and partnering with Amkor Technology to offer customers more flexibility in advanced packaging.
Beyond manufacturing, CEO Lip-Bu Tan is driving a broader cultural and strategic transformation at Intel. He’s advocating for a “startup mentality,” granting engineers more autonomy, and streamlining operations to foster innovation and agility. Tan’s vision includes leveraging AI as a cornerstone of Intel’s future, with a focus on customer-centric and software-driven solutions, as well as potential investments in quantum computing and photonic interconnects to stay ahead of industry trends.
Despite recent financial challenges-Intel reported a net loss in Q1 2025-these strategic moves are seen as steps toward restoring Intel’s competitiveness and leadership in the global semiconductor market.
