Intel’s Foundry Revenue Falls 1000× Behind TSMC in 2023 as American Chipmaker Invests in 18A & 14A Technologies for Survival

In the fiscal year 2025, Intel Foundry has struggled to gain traction, with its revenue falling drastically short of that generated by TSMC, making the prospect of achieving break-even far less likely.

A Comparative Analysis: Intel’s Foundry Revenue Versus TSMC

With new leadership under CEO Lip-Bu Tan, Team Blue has initiated significant reforms across the organization, not only in its foundry operations but also in sectors like consumer products and artificial intelligence. This indicates a cautious optimism within Intel that positive changes may be on the horizon. However, the path to achieving financial stability, particularly in Intel Foundry Services (IFS), remains steep. According to data shared by Sravan Kundojjala from SemiAnalysis, the revenue forecast for Intel Foundry in 2025 is reportedly 1, 000 times less than that of its Taiwanese competitor.

Intel will have around $120M external foundry revenue in CY25 or 1000x less than TSMC. While 18A didn’t get foundry traction in the initial wave, Intel still pins hopes on overall foundry (internal plus external) and expects it to break-even exiting ’27, even with low… pic.twitter.com/Kh1sOi1WbE

— Sravan Kundojjala (@SKundojjala) November 10, 2025

Current estimates suggest that Intel’s foundry revenue could be as low as $120 million this year, a striking contrast to the substantial costs associated with its 18A manufacturing process. While the financial landscape appears daunting, there are indications of renewed interest in Intel’s semiconductor services. Major players such as Tesla, Broadcom, and Microsoft are reportedly leaning towards adopting Intel’s upcoming technologies, including the 18A and 14A nodes. Success in these areas could be critical in revitalizing the division and enabling it to rival TSMC’s dominance.

Man in Intel Foundry vest holding a silicon wafer in front of an Intel sign outdoors. — Intel’s CEO holding an 18A wafer | Image Credits: Intel

Despite achieving some milestones with the 18A process, IFS has not yet demonstrated its full potential to the industry. Upcoming product lineups, such as Panther Lake and Clearwater Forest, will be crucial in defining the future trajectory of Intel’s foundry operations. CEO Lip-Bu Tan has previously emphasized that without significant external adoption of its processes, Intel may reconsider its commitment to competing in the relentless “Moore’s Law”race. This highlights the critical importance of nodes like the 14A as essential to the sustainability of Intel’s chip business.

While drawing comparisons between the IFS and TSMC is complex due to the stark disparity in scale, it is evident that being slow to adapt in the semiconductor arena can hinder competitiveness. ARM’s CEO, Rene Haas, has echoed similar sentiments in the past, noting that those lagging in innovation are unlikely to catch up. TSMC continues to lead the semiconductor sector, while Intel seems to be observing from a distance.

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