Intel has announced that its Foundry division is projected to break even by 2027, coinciding with the debut of its advanced 14A process node. This disclosure came from Chief Financial Officer David Zinsner at the J.P. Morgan Global Technology, Media & Communications Conference, where he detailed the company´s strategy to reverse years of losses by aggressively investing in new fabrication facilities and equipment. As the semiconductor giant faces tough competition from industry leaders TSMC and Samsung, Intel sees its upcoming technologies as central to reclaiming its competitive edge.
The initial focus is on the rollout of the 18A process, with the first client PC product, codenamed Panther Lake, set to launch in late 2025 and reach volume production by 2026. This node will also be used for Intel´s next-generation Xeon server chips, dubbed Clearwater Forest. Initially, 18A will be tested internally, with plans to gradually engage a select group of external partners to demonstrate the maturity and reliability of the technology. Zinsner acknowledged the slow ramp-up but expressed confidence that successful performance in Intel´s own products will stimulate interest and greater adoption by external customers for the 18A, 18A-P, and later, the 14A processes.
A significant component of Intel´s path to profitability is its introduction of High-NA extreme ultraviolet (EUV) lithography at the 14A node, which will result in higher up-front equipment costs. However, Intel expects gains in transistor density and power efficiency to outweigh these expenses, driving improvements in margins and utilization rates. The company will also rely on revenue from mature nodes, including Intel 16/12, as well as advanced packaging services and strategic collaborations with partners like UMC and Tower. Under the ´smart capital´ model, Intel aims to skillfully balance internal and external wafer production needs while maintaining operational flexibility and discipline. With an external revenue target in the low to mid single-digit billions, Intel Foundry is poised to break even by 2027, as the 14A and enhanced 1.8 nm-class 18A-P(T) nodes come into play, setting the stage for sustained profitability beyond that year.
