- Report suggests that Intel (INTC) has signed a major foundry deal with Microsoft (MSFT) using the 18A process, with talks underway with Google (GOOG), marking a milestone under CEO Lip-Bu Tan to compete with TSMC and Samsung.
- Intel’s 18A process is in risk production, with volume manufacturing expected this year, and enhanced variants 18A-P (2026) and 18A-PT (2028) in development, alongside early 14A PDK sharing with partners.
- Intel’s $32 billion investment in Arizona fabs, $28 billion for Ohio factories (2030-2032), and global expansions in Ireland, Israel, and Malaysia bolster its foundry capacity and tariff resilience.
Intel (INTC) is solidifying its position in the advanced semiconductor foundry market, with TrendForce reporting a major foundry deal with Microsoft (MSFT) leveraging the 18A process, alongside ongoing discussions with Google (GOOG). This milestone, under CEO Lip-Bu Tan, enhances Intel’s competitive stance against TSMC and Samsung in a global semiconductor market projected to surpass $600 billion by 2030. The 18A process, now in risk production and slated for volume manufacturing later this year, has garnered significant industry attention, with Chosun Biz noting initial 18A-P wafers already in Intel’s fabs and enhanced variants 18A-P and 18A-PT planned for 2026 and 2028, respectively. Intel’s forward-thinking approach extends to its 14A node, with early 14A PDKs shared with key partners, signaling, as per the report, robust collaboration with lead customers.
Intel’s extensive U.S. manufacturing infrastructure, the largest among foundry players, provides a strategic advantage amid tariff uncertainties, supported by over $32 billion invested in two state-of-the-art fabs in Arizona and expanded packaging facilities in New Mexico. In Ohio, Intel’s $28 billion commitment to two new factories, delayed to 2030-2032, underscores long-term ambition, while a new 300mm logic and foundry plant in Oregon bolsters domestic capacity. Globally, Intel is accelerating its footprint, with Ireland’s Fab 34 set to commence mass production of the Intel 4 process and 3nm chips this year, Israel’s Fab 38 utilizing EUV lithography for high-performance chips, and an advanced packaging facility operating in Penang, Malaysia. TrendForce’s report also aligns with prior industry insights from Tom’s Hardware, which noted Nvidia’s (NVDA) exploration of the 18A process for gaming GPUs, reflecting growing demand for Intel’s advanced node. Intel’s strategic investments and high-profile partnerships position it to capitalize on the semiconductor industry’s evolution, reinforcing its role as a global foundry leader.
Price Action: Intel stock is up $0.48 or 2.34%, in early trading Thursday, currently exchanging hands at $20.79. The Santa Clara, CA-based chipmaker, with a market cap of $88.6 billion, has experienced a 31% year-over-year decline.
WallStreetPit does not provide investment advice. All rights reserved.
Leave a Reply