Intel Foundry has experienced sluggish business momentum in CY2025, as its revenue is significantly lower than that of TSMC, with break-even being a far-fetched prospect.
Intel's Foundry Revenue Is "Peanuts" In Comparison To What TSMC Has Achieved Over The Years
Ever since Team Blue introduced its new leadership under CEO Lip-Bu Tan, there have been drastic changes made within the firm, not just on the foundry front, but also within departments such as consumer products and AI, which indicates that there's optimism within the company for a turnaround. However, particularly with the IFS, it appears that the division still has a long way to go in achieving a break-even point. Based on statistics shared by Sravan Kundojjala from SemiAnalysis, it is reported that Intel Foundry CY25 revenue is 1000 times lower than that of the Taiwan giant.
Intel's Foundry revenue for this year is estimated to be just $120 million, which is nothing compared to the company's expenditure associated with processes like the 18A. The department is indeed in a difficult financial position, but recent developments have shown us that interest in Intel's chip services is indeed there. Companies like Tesla, Broadcom, and Microsoft are reportedly showing an inclination towards Intel's upcoming processes, such as the 18A and the 14A, which could prove decisive in returning the division to its former glory and enabling it to compete with TSMC.
The IFS still isn't out of the grey area for now, since, despite the recent achievements with the 18A node, the firm has yet to show the industry the 'true form' of the process, and lineups like the Panther Lake and Clearwater Forrest will indicate where Intel is heading with its foundry division. More importantly, CEO Lip-Bu Tan has stated in the past that if the company doesn't manage to see external adoption for its nodes, Intel will drop the "Moore's Law" race, which indicates that chips like the 14A will be pivotal for the existence of Team Blue's chip business.
Drawing parallels between the IFS and TSMC is a bit unfair when it comes to the scale of comparison, but the magnitude of difference between the two entities shows us that being slow in the chip race means that you'll never catch up, as stated by ARM's CEO, Rene Haas, in the past as well. TSMC is currently dominating the chip industry, while Intel appears to be watching from the sidelines.
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