Long before former Intel board member Lip-Bu Tan returned to take the reins at Intel, the company was betting big on its upcoming 18A node. The first sub-2nm process from Intel’s foundry 18A had the potential to reel in the big customer commitments that Intel needs to get its foundry back to black. Tan began reshaping the chip giant to be leaner and more focused while also helping 18A, the culmination of his predecessor’s vision, make the final leg of its journey to production. Now, customers are trying test chips, but the commitments haven’t up—at least, not yet, according to a report from Reuters.
Intel Foundry roadmap.
Credit: Intel
It’s too early to worry much about Intel’s 18A orders, but much rests on the new node. Speaking at J.P. Morgan’s Global Technology, Media and Communications conference in Boston, Massachusetts, Intel finance head David Zinser noted that Intel Foundry needs customers to place orders amounting to billions of dollars to meet the company’s expectations for the Foundry breaking even in 2027. As yet, commitments apparently have been significant.
Intel likely doesn’t need all that many customers to hit its goals. Picking up Broadcom and Nvidia, both companies that reportedly have been engaged in tests of 18A-based tech, could give Intel Foundry a significant boost. And the US government has apparently been encouraging Broadcom and Nvidia to consider Intel as a way to improve US chip production.
At the same time, Taiwan-based TSMC, which has made chips for Broadcom and Nvidia, is taking major steps to increase its US manufacturing presence and is bringing some of its latest chip technology to its fab in Arizona. As a result of TSMC’s efforts, customers may have the option to consider both Intel and TSMC without running afoul of the Trump administration’s efforts to bring manufacturing back to the US.
Credit: TSMC
Zinser also suggested that Intel’s new CEO isn’t planning “massive changes” to Intel Foundry. Given that assessment, it seems likely that the Foundry is here to stay, both for external customers and for making Intel’s own chips.
Meanwhile, TSMC claims to be seeing “unprecedented” demand for its N2 process. The 2nm node has been available to customers for a short time, putting it ahead of its direct competitor, Intel’s 18A. Apple is believed to be TSMC’s first major customer for the 18A process, with more customers waiting in the wings.