Intel Unveils Insights on 14A/18A Chips and Advanced Packaging Opportunities, Anticipating Customer Commitments by H2 2026

During Intel’s Q4 earnings call, CEO Lip-Bu Tan and CFO David Zinsner provided insights indicating that the company’s foundry division is gradually building momentum.

Promising Financial Projections for Intel’s Foundry Division

Despite challenges in achieving equilibrium between its consumer and DCAI segments, Intel’s foundry business is making notable strides. CEO Lip-Bu Tan elaborated on the advancements regarding process nodes and customer engagement, particularly highlighting the rollout of the PDK 1.0 for the 18A-P process. This development marks a significant step forward as Intel enhances its yield rates and accelerates its production capabilities.

We are now shipping our first products built on Intel 18A, the most advanced semiconductor process developed and manufactured on U. S.soil. As stated earlier, yields continue to improve steadily as we work to ramp the supply needed to meet strong customer demand. In addition, Intel 18AP continued to progress well.and we are engaging with internal and external customers on this note, delivering our 1.0 PDK at the end of the last year.

– Intel’s Lip-Bu Tan

Intel’s 18A-P process is emerging as a strong contender in the market, particularly when juxtaposed against TSMC’s N3 process, which is currently facing significant supply shortages. Prominent companies like Apple are participating in the sampling phase with Intel, suggesting a potential partnership. However, a crucial factor remains: does Intel possess the necessary capital expenditure (CapEX) to fulfill these orders? In response to inquiries on this topic, CFO David Zinsner provided clarity:

Yes. On 14A, Lip-Bu has been very direct with us on all of this. He does not want to spend on capacity on 14A, only spend on the kind of TD spend or R&D spend associated with 14A even in the fab until we have customers secured.

We’ve talked about, the likelihood is, our customers on 14A their window to secure or for us to secure them will be in the back half of this year and in the first half of next year. And so once visibility improves there, we’ll start to unlock the spend on 14A.

– Intel’s David Zinsner

Intel’s foundry segment grapples with a capital dilemma, as extensive investments in R&D and fabrication facilities have significantly impacted its total CapEX allocation. The industry’s skepticism surrounds whether Intel can generate sufficient capital to increase production, especially if the 18A-P and 14A nodes prove successful. It seems the company is strategically postponing expenditure until customer commitments materialize.

A chart titled 'intel foundry' shows quarterly segment revenues from Q4'24 to Q4'25.

As for the 14A milestones, customers are currently engaging with the 0.5 PDK sampling phase. Based on the CFO’s remarks, firm commitments from customers are anticipated in the latter half of 2026, a period that could prove pivotal for Intel’s foundry division. The 14A process is designed to cater to external developers, with an increasing number of fabless companies looking to adopt leading-edge technologies.

Okay. Now this product. This is a volume we’re going to run with you.and that’s how you’re starting to build. So — in terms of 14A, realistically in terms of, I call it, the risk production in the later part of 2027 and real production, volume production in 2028. That is similar to the same time frame as a leading foundry.

– Intel’s CEO Lip-Bu Tan

Expanding Opportunities in Advanced Packaging

Intel’s leadership also addressed the company’s advancements in the advanced packaging sector—an area currently facing substantial constraints, with few industry players capable of offering effective alternatives. Notably, Intel’s EMIB and Foveros technologies are becoming attractive options for high-performance computing (HPC) customers. CFO David Zinsner noted that clients are actively “prepaying for production”of EMIB and EMIB-T, a testament to the growing demand for these solutions.

An unbranded computer processor with a visible die layout. — Intel’s EMIB solution

I think the EMIB-T, I think, is a very big differentiator for us. And then clearly, we have a couple of customers willing to even prepay the subscript — because [subscript] is very big supply shortage and then they’re willing to share with us. That means that shows the commitment they are going to be working with us.

– Intel’s CFO David Zinsner

Zinsner forecasts that commitments in advanced packaging could exceed “$1 billion”, which would potentially lead to mainstream adoption of EMIB in 2026. This shift is critical for alleviating operating losses within Intel’s foundry division, ultimately aiding in achieving break-even. The integration of frontend and backend semiconductor solutions from a single provider will undoubtedly attract industry interest, positioning Intel Foundry as one of the rare firms that can deliver such offerings.

Intel’s ongoing efforts to establish a successful foundry in the U. S.are increasingly bearing fruit. With advanced packaging solutions and robust chip technologies, Team Blue is now well-equipped to leverage external demand effectively.

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