Intel Corp said Tuesday that several of its contract manufacturing customers plan to build test chips for an advanced chipmaking process still under development.
The announcement came during the company’s Direct Connect conference, where Intel said it had received interest in its contract chip business, also known as its foundry unit. Intel has faced challenges in building a competitive foundry business to rival Taiwan Semiconductor Manufacturing Co, but said it remains committed to the effort.
Intel CEO Lip-Bu Tan, who took over in March, said in his first public remarks that he plans to revamp the company’s foundry operation. Tan asked customers to be “brutally honest” in providing feedback and confirmed his commitment to making the Intel foundry successful.
At the event in San Jose, California, Tan said he has received questions about Intel’s commitment to the foundry business. “The answer is ‘yes’,” he said. “I’m committed to (making) the Intel foundry successful, and I know there are areas we need to improve.”
Intel said it intends to introduce a new chipmaking tool, the high-NA EUV machine, as part of its 14A manufacturing process, which also includes new technology for power delivery. High-NA EUV machines can reduce the number of steps needed to manufacture chips but come with some risk.
Intel’s foundry technology chief, Naga Chandrasekaran, said the company will retain the option of using older, more proven technologies. Customers will not be required to change their designs.
The move to adopt high-NA EUV machines marks a shift in Intel’s strategy. In the 2010s, the company declined to adopt an earlier generation of EUV machines, while TSMC advanced with the technology. TSMC has not disclosed when it will use high-NA EUV machines for mass production.
Intel also said it had distributed an early version of a digital design kit, which is needed to turn chip blueprints into functional silicon.
Chandrasekaran said Intel’s 18A process is “facing ups and downs” typical of new technologies, but added that the team continues to make progress. He forecast high-volume production on the 18A process in the second half of 2025.
Chipmakers often build test chips before committing to full designs, which are costlier and carry higher risks. Broadcom (AVGO.O) and Nvidia (NVDA.O) have conducted tests using Intel’s 18A process, Reuters reported in March.
Intel plans to begin manufacturing chips with the 18A process at its research and development facility in Hillsboro, Oregon. Production will ramp up later this year at its factories in Arizona, the company said.
