It seems like Intel isn't too optimistic about its foundry division's progress in the near future, as the firm claims to have limited external orders for its processes.
Intel Foundry Was Rumored To Have Been Partnering Up With NVIDIA & Others For Its Future Nodes; Has Team Blue Debunked This?
Intel isn't having the best times right now, given that many of its divisions, notably the chip business, are reporting underperformance. While there has been a leadership change with the new CEO, Lip-Bu Tan, taking over the office, things aren't looking to get smoothly for Intel Foundry. In a report by Reuters, Intel's CFO David Zinsner revealed that the demand for upcoming processes isn't "significant" at all, hinting that most of the production for Intel's high-end nodes will be used internally, which isn't something that is positive for the firm.
We get test chips, and then some customers fall out of the test chips... So committed volume is not significant right now, for sure.
- Intel's CFO
The statement comes at a time when it is reported that Intel is seeing interest from NVIDIA and many others for its 18A process, and that the firm could act as a viable alternative to TSMC US. With Zinsner hinting at limited adoption, either it debunks all the rumors surrounding 18A, or Intel doesn't want to validate them until decisive progress has been made. Having external customers is one of the only ways Intel can scale up the foundry division in terms of revenue, and "internal use only" would put the IFS at significant downside here compared to competitors.
Apart from this, Intel's CFO revealed that the foundry division is on track to break even sometime in 2027, and this would come if external customers adopt the foundry's processes and "generate low to mid-single digit billions" in revenue. Interestingly, Intel hasn't ruled out the fact that they won't source chips outside the IFS, and it is claimed that TSMC will play a vital part in Nova Lake desktop CPUs, so the Intel Foundry being an internal project isn't something that Team Blue would want.
There's tremendous optimism around Intel's 18A process, especially after the recent Direct Connect 2025 event. NVIDIA and others need a second foundry alongside the Taiwan giant, and right now, the only solid options are Intel and Samsung, so there's a race between the two.
About the author: Muhammad Zuhair is a hardware and technology reporter for Wccftech, specializing in the semiconductor industry and the complex interplay between technology, manufacturing, and geopolitics. His coverage focuses on the corporate strategies and technological roadmaps of industry giants like TSMC, NVIDIA, Samsung, and Intel. Zuhair's expertise lies in deconstructing complex topics such as fabrication nodes (e.g., 2nm process), the economic impact of policies like the CHIPS Act, and the strategic development of AI infrastructure from NVIDIA, AMD and Intel.
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