Intel remains committed to foundry business

Intel’s 18A process development is proceeding on schedule, the company’s general manager of the foundry business Naga Chandrasekaran said at an investor event. “There’s nothing fundamentally challenging on this node now. It’s about going through the remaining yield challenges, defect density challenges,” he explained. 18A is where Intel hopes to be able to compete with TSMC. The start of the node’s production ramp is planned for the second half of 2025.

The abrupt exit of CEO Pat Gelsinger earlier this week sparked speculation on Intel’s commitment to the foundry business. Interim co-CEO David Zinsner assured that the firm’s core strategy to turn into a “world-class” foundry would remain intact, though it would take a more conservative approach to capital spending.

Under the terms of the US Chips Act funding it secured just prior to Gelsinger’s retirement, Intel is obliged to retain a majority stake in its foundry subsidiary. The contract also stipulates that the wafer purchasing agreements with Intel Foundry must remain intact.