Intel gets test chip orders for new manufacturing process

Intel announced on April 29, 2025 that several contract manufacturing clients plan to produce test chips using its upcoming advanced manufacturing process, currently in development.

CEO Lip-Bu Tan, who started in March, reaffirmed his commitment to Intel’s foundry business amid ongoing challenges.

He acknowledged the need for improvements and stressed his focus on ensuring the success of the foundry operation.

Intel also confirmed plans to increase production of its current manufacturing process, known as 18A, this year.

Test runs of the 18A process have already been conducted by customers such as Broadcom and Nvidia.

🔗 Source: Reuters

🧠 Food for thought

1️⃣ Intel’s foundry pivot represents a return to its manufacturing roots

Intel’s current foundry strategy under Lip-Bu Tan marks a return to the company’s historical strengths, after years of manufacturing setbacks.

Founded in 1968, Intel built its empire on manufacturing excellence, with innovations like the 4004 microprocessor in 1971 that established its semiconductor leadership 1.

While Intel led the industry for decades, it gradually lost its manufacturing edge to TSMC, culminating in an $18.8 billion net loss in 2024, its first annual loss since 1986 2.

The 18A and 14A nodes represent Intel’s technological comeback attempt, incorporating innovations like RibbonFET transistors and PowerVia backside power delivery that promise significant performance gains 3.

This manufacturing-focused strategy aligns with Intel’s traditional strength as an integrated device manufacturer (IDM), unlike the “fabless” approach adopted by competitors who design chips but outsource production.

Industry analysts project that if successful, Intel’s foundry business could generate $10 billion in annual revenue by 2027, providing a crucial path to financial recovery 3.

2️⃣ Test chips signal a careful, staged approach to winning foundry customers

The announcement that customers are building test chips for Intel’s 14A process reveals the methodical, multi-step journey required to establish trust in semiconductor manufacturing.