Intel announced that its 18A process node, the most advanced technology in its portfolio, will be made available to external customers as a foundry service. The announcement was made during the Morgan Stanley Technology, Media & Telecom Conference in San Francisco on March 4 2026, marking a significant change in Intel’s approach to its foundry business.
The 18A node incorporates RibbonFET and PowerVia technologies, delivering higher performance and energy efficiency than previous nodes. While the node’s first risk‑production wafers appeared in Arizona’s Fab 52 in the third quarter of 2025, the technology itself entered development earlier in 2025 and began high‑volume manufacturing in late 2025 or early 2026. By opening the technology to external customers, Intel aims to increase fab utilization and generate additional revenue streams.
Intel’s foundry business has historically struggled to attract external customers, with operating losses and limited market share compared to competitors such as TSMC. The decision to offer 18A to third‑party clients is a strategic pivot designed to address these challenges. It signals Intel’s intent to compete more directly in the advanced‑node foundry market and to leverage its U.S. manufacturing footprint as a competitive advantage.
Intel’s Q4 2025 results provide context for the potential impact of this shift. Revenue for the quarter was $13.7 billion, a 4% year‑over‑year decline, while gross margin stood at 36.1%. The company beat earnings expectations, reporting an EPS of $0.21 versus the consensus of $0.17—a $0.04 or 24% beat—largely due to strict cost controls that preserved margins despite the revenue dip. The foundry segment, however, continued to incur operating losses, underscoring the need for new revenue sources.
During the conference, CFO David Zinsner highlighted that demand fundamentals remain healthy across core markets, driven by AI and data‑center growth. He noted that Intel’s supply constraints are expected to improve in the second quarter, and that the company’s balance sheet is strengthened by recent investments from NVIDIA and SoftBank. These comments suggest that Intel is positioning itself to capitalize on the growing demand for advanced process nodes.
Investors have focused on the company’s guidance and the challenges facing its foundry business. While the announcement of 18A as a service offers a potential upside for future revenue, concerns about guidance and the ongoing losses in the foundry segment remain key considerations for market participants.
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