--- title: "Intel CEO says progress has been made in foundry business, next-generation manufacturing process expected to compete with Taiwan Semiconductor" type: "News" locale: "en" url: "https://longbridge.com/en/news/286827752.md" description: "Intel CEO Chen Liwu stated that the company's external foundry business is steadily developing and is key to turning losses into profits. Intel's 18A manufacturing process has made significant progress, with manufacturing yields exceeding expectations, attracting more and more potential customers. Chen Liwu pointed out that commitments from multiple foundry customers are expected in the second half of the year, marking the company's progress in competing with Taiwan Semiconductor" datetime: "2026-05-18T23:15:45.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/286827752.md) - [en](https://longbridge.com/en/news/286827752.md) - [zh-HK](https://longbridge.com/zh-HK/news/286827752.md) --- # Intel CEO says progress has been made in foundry business, next-generation manufacturing process expected to compete with Taiwan Semiconductor Intel CEO Chen Liwu stated in an interview on Monday local time that the company's external foundry business is steadily developing and has become a key part of its turnaround strategy. "The foundry business is very important," Chen Liwu said, "it is one of the important national assets." Intel's foundry business, which refers to wafer foundry services, is one of the most expensive and critical components of the company's revitalization strategy. It aims to produce semiconductors for external customers while helping to rebuild the United States' advanced chip manufacturing capacity. Historically, Intel's factories only produced proprietary chips for personal computers and data center servers. Chen Liwu's predecessor, Pat Gelsinger, strongly promoted the costly external foundry strategy. Since Chen Liwu was appointed CEO in March 2025, Intel's stock price has soared over 300%, with investors betting that this veteran semiconductor industry executive can reverse the company's decline over the years. One key question is whether Chen Liwu can achieve Intel's foundry goals and compete with companies like TSMC in manufacturing capabilities. On Monday, Chen Liwu stated that the company is making tangible progress toward this goal. He specifically pointed out that Intel's advanced 18A manufacturing process has seen improvements, which investors have been closely monitoring as a critical test for the company's turnaround. Chen Liwu noted that when he took over, the 18A process "was not ideal." "Now I see its progress," he said. Manufacturing yield, which is the percentage of usable chips produced per wafer, is a key indicator of the profitability of the wafer foundry business and customer confidence. Chen Liwu stated that Intel's progress has exceeded expectations. "The best practice is to improve yield by 7% or 8% each month, and now I have seen that," he said. Chen Liwu mentioned that these advancements have begun to attract customer interest. As Intel's manufacturing capabilities improve, more potential customers are proactively reaching out to the company to utilize its foundry services. Earlier this month, reports indicated that Intel and Apple had reached a preliminary agreement for Intel to manufacture some Apple chips that are currently produced by TSMC. When asked about this during Monday's interview, Chen Liwu declined to disclose customer names. However, Chen Liwu stated that Intel expects to receive commitments from multiple foundry customers in the second half of the year. "Several customers are working with us," he said, "and we look forward to serving them." These remarks align with previous statements made by Intel executives to investors. In the company's earnings call in April, Chief Financial Officer David Zinsner stated that Intel expects signals from external foundry customers to become "more clear" in the second half of the year and into early 2027. In addition to Intel's own turnaround, Chen Liwu also pointed out the strategic significance of the wafer foundry business for the U.S. semiconductor supply chain. Intel has built a factory in Arizona using the 18A process, while another project in Ohio has faced significant delays and is not expected to begin production until at least 2030 "Currently, more than 90% of the most advanced processors are produced abroad," he said. "So I think it is very important to move some of the production lines back to the country." Looking ahead, Chen Liwu stated that Intel's next-generation 14A process may eventually compete with Taiwan Semiconductor, which is widely regarded as the leading third-party chip manufacturer. "It will be on par with TSMC's process timeline," he said. 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