Key Insight:
Intel Foundry is positioned to be a major beneficiary of the exploding demand for AI accelerators, as industry giants like Microsoft reportedly commit to its advanced manufacturing processes. The company’s 18A node—with unique features like backside power delivery for better energy efficiency—has caught the attention of top hyperscalers, marking a new phase in Intel’s journey to challenge TSMC’s market dominance in leading-edge chip production. As Intel pivots strategically under new leadership in 2025, the foundry business emerges as a critical growth vector despite the company’s struggles in traditional CPU and accelerator market share.
Background:
For years, Intel lagged behind competitors due to manufacturing delays and failed to gain traction as a foundry partner for fabless chip companies. However, a historic surge in demand for AI chips and tight global advanced manufacturing capacity have shifted dynamics. In early 2024, Microsoft signed on to use Intel’s 18A process for its next-generation Maia AI chip, moving away from TSMC’s 5nm technology for this project. Meanwhile, the global foundry market surged 13% year-over-year in Q1 2025, reaching $72.29 billion, largely driven by AI and high-performance computing. Intel is now leveraging its U.S.-based sites, sustainability focus (99% renewable energy in 2023), and expanded global footprint to address scale, security, and supply chain concerns for large customers.
Credit fool.com
https://www.fool.com/investing/2025/10/21/prediction-intel-foundry-will-be-a-massive-ai-winn/