Intel Announces Limited Customer Commitments for Future 18A & 14A Chips; Foundry Division Targeting Breakeven by 2027

Intel appears to be facing challenges within its foundry division, projecting a less than optimistic outlook regarding external orders for its chip manufacturing processes.

Intel’s Foundry Collaborations: Fact or Fiction?

The current state of Intel is less than ideal, with several segments of the company, especially its chip business, underperforming. Despite a change in leadership under new CEO Lip-Bu Tan, prospects for growth in the foundry sector seem dim. A recent report by Reuters highlights Intel CFO David Zinsner’s remarks that interest in forthcoming manufacturing processes is not “significant.”This indicates that the majority of production for Intel’s advanced nodes may be directed internally, a concerning sign for the company’s forecast.

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

This revelation coincides with speculation that Intel has been courting major players like NVIDIA for its 18A manufacturing process. While the company’s capacity could serve as a promising alternative to TSMC in the US, Zinsner’s comments raise doubts about the widespread adoption of the 18A process. If true, this could either dismantle the rumors surrounding it or suggest that Intel prefers to remain cautious until substantial progress has been confirmed.

The potential for revenue growth in the foundry division depends significantly on attracting external customers. Zinsner projected that the foundry division could reach break-even by 2027, contingent upon outside client adoption and generating revenues of “low to mid-single digit billions.”Interestingly, despite Intel’s internal focus, the company has not entirely ruled out the possibility of sourcing chips externally, with TSMC expected to play an essential role in upcoming Nova Lake desktop CPUs.

There is considerable enthusiasm surrounding Intel’s 18A process, which was further amplified during the recent Direct Connect 2025 event. Companies like NVIDIA and others are on the lookout for an additional foundry option alongside TSMC, with Intel and Samsung emerging as the primary contenders, creating a competitive landscape.

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