Intel has reportedly entered into a large-scale semiconductor foundry contract with Microsoft (MS) using the 18A process classified as 2 nanometers (1.8 nanometers), and discussions are ongoing with Nvidia and Google. If this contract succeeds, it is expected to serve as a springboard for growth under the newly appointed CEO Lip-Bu Tan while asserting its presence in the competitive advanced foundry market, where TSMC and Samsung Electronics are competing.
According to major foreign media and industry sources on the 8th, Intel's 18A process chips are expected to enter a stable mass production system starting this second half of the year. Earlier, industry analysts remarked that a 1-nanometer process seemed unrealistic, but Intel has repeatedly expressed its confidence. According to an Intel representative, the 18A is currently in the risk production stage and is slated to enter mass production within this year.
Naga Chandrasekaran, Intel's global Chief Operating Officer (COO), explained last month at the 'Intel Foundry Direct Connect 2025' event in the U.S. that '18A is the most advanced technology among the nodes developed in the U.S. and is the first gateway to technologies that will expand in mass manufacturing.' He added, 'We are currently making significant progress and are confident that we can start mass production through this node by the end of this second half of the year to provide services to customers.' Intel also stated that 'Intel 18A-P,' a derived node with enhanced performance over 18A, is already at the stage where initial wafers have been introduced into the fab (manufacturing facility).
As semiconductor tariffs from the Trump administration's second term have emerged as a risk factor for major corporations, Intel appears to have a more diversified supply chain compared to TSMC and Samsung Electronics, and if it succeeds in stabilizing its 18A process, it is expected to reap geopolitical advantages. Notably, it has the most U.S. factories among foundry companies, freeing it from tariff pressures.
Intel is investing more than $32 billion to construct two new state-of-the-art factories in Arizona, while expanding advanced packaging lines in New Mexico with an investment of $4 billion. In Oregon, it is proceeding with the construction of a new 300mm logic and foundry factory. In Ohio, the company invested $28 billion in the construction of two new factories. However, due to delays in the schedule, the commencement of operations is projected for around 2030 to 2032.
The pace of process advancement at overseas factories has also accelerated. In addition to the U.S., Intel is set to start mass production of its Intel4 process at its fab (Fab 34) in Ireland and to begin manufacturing 3-nanometer chips this year. In Israel's Fab 38, the plan is to produce high-performance chips using extreme ultraviolet (EUV) lithography equipment. Additionally, Intel has an advanced packaging factory in Penang, Malaysia.
Industry experts anticipate that if Intel's foundry attracts major clients this year with its 18A process, it could emerge as a strong competitor in the advanced process field, currently dominated by TSMC. Notably, CEO Lip-Bu Tan at Intel is evaluated as having differentiated leadership in terms of understanding and strategy across the semiconductor design automation (EDA), packaging, and foundry sectors, compared to previous CEOs.
An industry insider familiar with Intel stated, 'The Intel board's decision to elevate CEO Lip-Bu Tan instead of former CEO Pat Gelsinger, a process expert, is aimed at opening the doors to large-scale orders for Intel's foundry business,' adding, 'The coming months will be a critical period in determining whether Intel can shift its direction and regain leadership in the semiconductor industry.'