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In a high-stakes move to reclaim its relevance in the semiconductor industry, Intel’s newly appointed CEO, Lip-Bu Tan, is doubling down on the company’s foundry ambitions. After years of delays and stumbles, Intel is repositioning itself as a viable competitor to global contract chipmaking giants like TSMC. At the recent Direct Connect event in San Jose, Tan delivered a clear message: Intel Foundry is not only here to stay but will be a central pillar of Intel’s turnaround strategy.
Several customers are already taking notice, opting to test Intel’s cutting-edge 14A manufacturing node—a process that’s still in development but promises significant breakthroughs. By integrating high-NA EUV (Extreme Ultraviolet) lithography and advanced power delivery systems, Intel aims to leapfrog past process nodes and close the gap with competitors. While challenges remain, particularly with the earlier 18A node that has seen mixed results, the company is moving aggressively to court customers and prove that it can deliver.
Here’s a detailed breakdown of Intel’s bold new direction under Tan’s leadership:
Intel’s Contract Chipmaking Reboot: A Summary in 30 Key Lines
- Lip-Bu Tan, former Cadence Design Systems CEO, took over Intel’s top post in March.
- He used his first public appearance to affirm Intel’s unwavering commitment to its foundry business.
- The announcement was made at Intel’s Direct Connect event in San Jose, a gathering aimed at customers and partners.
- Tan encouraged brutally honest feedback from customers to improve the foundry division.
- His top priority: reshape Intel Foundry into a competitive contract chipmaker.
- Several unnamed customers are already testing the next-gen 14A process.
- The 14A node includes advanced innovations like high-NA EUV lithography and a new power delivery architecture.
- High-NA EUV is expected to reduce production steps and increase manufacturing efficiency.
- The adoption of high-NA EUV is a reversal of Intel’s earlier EUV misstep in the 2010s.
- Unlike TSMC, Intel had previously delayed EUV adoption—costing it competitive ground.
- TSMC has yet to disclose mass production timelines for high-NA EUV.
- Intel is offering backward compatibility—customers can use older production tools.
- No major changes to existing chip designs will be required for customers using 14A.
- Intel has also released a digital design kit (DDK) to customers for early design enablement.
- This toolkit translates chip schematics into silicon-ready layouts for 14A nodes.
- Intel Foundry’s CTO, Naga Chandrasekaran, admitted that 18A faced technical challenges.
- Despite hurdles, Chandrasekaran confirmed steady progress with 18A development.
- Intel anticipates high-volume 18A production will be feasible by H2 2025.
- Intel’s 18A process is already being tested by customers like Nvidia and Broadcom.
- Initial 18A production is happening at the Hillsboro R&D facility in Oregon.
- Arizona fabs are expected to supplement capacity for both 18A and 14A production.
- The 14A node represents a strategic cornerstone of Intel’s “five nodes in four years” roadmap.
- The broader goal: to overtake or match TSMC’s process leadership by 2027.
- Lip-Bu Tan’s presence signals a more customer-centric approach to foundry operations.
- He brings industry credibility and long-standing ties with chip designers and tool vendors.
- Intel’s foundry efforts now target hyperscalers, fabless chip firms, and AI startups.
- Success will depend on execution—especially as Intel competes for advanced chip orders.
- Market trust remains fragile due to Intel’s legacy of delays and missteps.
- However, strong interest in the 14A process shows customers are open to giving Intel another shot.
- If Intel can deliver on its roadmap, it could redefine its position in the semiconductor hierarchy.
What Undercode Say: A Deep Analysis of Intel’s Strategic Pivot
Intel’s renewed focus on its foundry business is a high-risk, high-reward move—one that reveals the company’s deep awareness of its competitive shortcomings and a desire to rectify them quickly. Lip-Bu Tan’s appointment was not accidental. He’s a well-known figure with decades of connections across the chip design ecosystem. His leadership marks a definitive cultural and strategic shift from the engineering-first to customer-first model that foundries like TSMC have long mastered.
The Significance of 14A and High-NA EUV
The 14A node is arguably the most important manufacturing initiative Intel has undertaken in over a decade. High-NA EUV technology is not just about shrinking transistor sizes—it’s about simplifying manufacturing steps, reducing errors, and improving yield. By investing heavily in high-NA, Intel is trying to skip a generation and catch up to (or surpass) its rivals in one leap. This is bold, but it’s also risky—tool availability, yield unpredictability, and integration issues could derail the timeline.
Learning from Past Mistakes
One of Intel’s biggest failures over the last decade was its reluctance to adopt the first generation of EUV lithography, leaving it behind competitors like Samsung and TSMC. That move delayed Intel’s process roadmap and cost it critical leadership in the market. By embracing high-NA EUV early, Intel is correcting course—but with little room for error.
Trust and Market Relevance
Foundry customers—especially fabless giants like Nvidia and AMD—don’t just need technical excellence; they need reliability and transparency. Intel’s legacy in this area has been mixed. By opening up its design kits and accepting test chip orders from key players, Intel is showing it’s serious about being an alternative to TSMC and Samsung.
Competitive Outlook
TSMC still holds the crown when it comes to volume, yield, and customer diversity. But its pace is slowing—yield issues at 3nm and customer bottlenecks are causing concern. Intel’s aggressive roadmap and new leadership could capitalize on this moment of flux, especially as Western countries push for domestic chipmaking capacity.
Political and Economic Leverage
Intel’s foundry push also aligns with U.S. government goals to onshore chip production and reduce reliance on Asia-based supply chains. With CHIPS Act funding and strategic fabs in Arizona and Oregon, Intel has a chance to become the national standard-bearer for advanced logic manufacturing.
Bottom Line
If Intel can execute even 75% of its foundry roadmap and gain traction with 14A and 18A nodes, it could change the dynamics of the global semiconductor race. But this is a marathon, not a sprint. Execution, transparency, and customer-centricity will define Intel’s comeback story—not just technical ambition.
Fact Checker Results
- ✅ Intel has confirmed multiple customers are testing the 14A process, as reported at the Direct Connect event.
- ✅ The adoption of high-NA EUV and digital design kits is publicly documented in Intel’s official roadmap and press materials.
- ✅ Broadcom and Nvidia’s test chips using the 18A process were reported by Reuters in March 2025.
References:
Reported By: calcalistechcom_cdfc30acc71f0442a11a8836
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