Intel VP Rejects Foundry Spin Off Concerns as Strong Interest Builds Around 18A Chips and Advanced Packaging
Intel leadership is pushing back against renewed speculation of a potential foundry spin off as momentum grows around the company’s next generation process technologies and advanced packaging offerings. Speaking at the UBS Global Technology and AI Conference Intel’s VP outlined the company’s steady progress on its 18A node and growing customer engagement across both wafers and packaging underscoring rising confidence in Intel Foundry Services as a long term business.
Intel has already begun mass producing its next wave of Panther Lake chips built on the 18A process with retail showcases expected by January 5. Yield maturity remains the central determinant of the node’s commercial viability and profitability. According to Intel’s VP yields are not yet at optimal levels but since CEO Lip Bu Tan’s appointment in March month over month improvement has become predictable and is tracking in line with industry baseline expectations. This predictability is viewed internally as a major step toward long term node health.
The executive also addressed the elevated interest surrounding Intel’s 18A P and 18A PT variants. The process design kit for 18A P is showing strong maturity with Intel preparing to re engage external customers as part of its broader foundry ramp. These nodes are designed for both internal and external production which helps explain the surge in inquiries from prospective customers evaluating next generation process roadmaps. However Intel reiterated its policy of allowing customers to announce their own engagements rather than preemptively discussing node adoption.
Advanced packaging continues to emerge as a significant growth engine for Intel Foundry. With global demand straining TSMC’s CoWoS capacity customers are increasingly exploring alternative packaging solutions such as Intel’s EMIB EMIB T and Foveros. Intel’s VP noted that the initial wave of interest arrived as “spillover capacity” from CoWoS bottlenecks but that early tactical relationships have evolved into deeper strategic conversations.
He acknowledged Intel’s own packaging challenges noting that Foveros ramp progress fell short of internal expectations while TSMC executed a strong CoWoS capacity expansion. However this capacity crunch brought new customers to Intel’s doorstep enabling the company to expand engagement into long term collaboration opportunities. Today Intel reports “good success with some advanced packaging customers” reflecting sustained traction in the space.
When asked about rumors of a potential foundry spinoff the VP made it clear that such discussions are not taking place. External customers are now evaluating both chip production and packaging options through Intel Foundry Services reinforcing leadership’s confidence that the business is positioned for improvement and does not require structural separation. Optimism for IFS therefore remains steady even amid ongoing node ramp challenges.
Intel’s combination of maturing 18A technology growing customer interest and an expanding packaging portfolio suggests that the company is entering a more strategically stable phase as it continues competing directly with TSMC and Samsung for advanced process leadership.
Do you think Intel’s 18A and advanced packaging push will meaningfully shift market share in the coming years? Let us know your thoughts.
