Intel Foundry Business Gains Momentum as CEO Signals New Customer Deals and Manufacturing Breakthrough

Intel is seeing renewed optimism around its foundry business as CEO Lip-Bu Tan says the company’s external chip manufacturing arm is gaining strong momentum. Speaking on CNBC’s Mad Money, Tan emphasized that improving production performance is starting to attract serious interest from potential customers.

According to Tan, Intel’s foundry turnaround is being driven by steady improvements in manufacturing yields, a key measure of how many usable chips are produced from each wafer. He noted that progress in Intel’s advanced 18A manufacturing process has exceeded expectations, marking a major shift from earlier performance challenges.

When discussing the state of the technology before his leadership, Tan admitted the 18A process was previously underperforming but said it is now showing consistent improvement. He highlighted that industry-standard yield improvements typically range between 7% to 8% monthly, adding that Intel is now tracking within that range.

The growing technical stability is beginning to translate into business interest. Tan revealed that multiple prospective customers are now engaging with Intel’s foundry services, with the company expecting formal commitments in the second half of the year. While he declined to confirm specific clients, reports have suggested possible collaborations with major tech players.

Beyond business growth, Tan also framed Intel’s foundry expansion as strategically important for the United States’ semiconductor independence. He pointed out that the majority of advanced chip manufacturing still takes place outside the U.S., stressing the need to bring more production back home. Looking ahead, he expressed confidence that Intel’s next-generation 14A process could compete directly with industry leader TSMC, signaling a potential shift in the global chip race.

source: cnbc