Intel’s foundry division appears to be facing challenges, as the company isn’t too hopeful about gaining significant external orders for its upcoming processes. Recently, Intel’s CFO, David Zinsner, shared insights suggesting limited interest from outside clients, indicating that most production for Intel’s advanced nodes might remain in-house—a situation that could hinder the division’s growth compared to competitors.
There have been rumors about potential collaborations with companies like NVIDIA for Intel’s future nodes, but Zinsner’s comments cast doubt on these speculations. He noted that while test chips are in development, a significant portion of potential clients have not committed to substantial orders. This wavering demand suggests that Intel’s foundry ambitions might face an uphill battle.
Despite the challenges, Intel’s foundry division aims to break even by 2027. Achieving this goal relies heavily on attracting external clients and generating revenue in the low to mid-single digit billions. However, Intel may also seek external partners for certain projects, with TSMC reportedly playing a critical role in Nova Lake desktop CPUs.
Optimism surrounds Intel’s 18A process, particularly following the Direct Connect 2025 event. There’s a market need for a secondary foundry option beside the Taiwanese giant, TSMC, making Intel a potential contender. As Intel and Samsung vie for this position, the race is on to see who can effectively fill the need for a reliable alternative.
