Observed Signal · May 18, 2026 · Strategy Update · Source: CNBC Technology · Impact: 4/5 · Sentiment: Positive
Intel CEO: Foundry Business Gaining Momentum
Intel CEO Lip‑Bu Tan said the company’s external foundry business is gaining traction as manufacturing yields improve, attracting interest from outside customers. Speaking on CNBC’s Mad Money, Tan highlighted progress on Intel’s advanced 18A process and said he’s seeing monthly yield improvements consistent with best practices. He declined to name customers but said Intel expects commitments from multiple foundry customers in the second half of the year. The article notes prior reporting of a preliminary Intel‑Apple chip manufacturing agreement and references Intel’s Arizona 18A fab and a delayed Ohio project not expected to start production until at least 2030. CFO David Zinsner previously said signals from external foundry customers should become more concrete in H2 2026 and into early 2027.
Intel’s foundry progress and potential customer commitments (including reports involving Apple) could materially affect global semiconductor supply chains, U.S. manufacturing capacity, and competition with TSMC.
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Key Takeaways & Evidence Grounding
- Intel CEO Lip‑Bu Tan said the company’s external foundry business is gaining traction and is a key part of the turnaround.
- Tan cited improvements in Intel’s 18A manufacturing process and reported observing ~7–8% yield improvement per month.
- Intel expects commitments from multiple foundry customers in the second half of 2026, according to Tan.
- The Wall Street Journal reported on May 8, 2026 that Intel and Apple had reached a preliminary chip‑making agreement.
- Intel operates a new Arizona fab using the 18A process; a separate Ohio project is delayed and not set to start production until at least 2030.
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Related Market Signals & Shifts
Recent verified developments and strategic activity across this market segment.
Intel Near Deal to Make Apple Chips
Reports say Apple and Intel have reached a preliminary agreement that would have Intel manufacture some of Apple’s device chips. The potential deal—first reported by the Wall Street Journal and cited by CNBC—would mark a major validation for Intel’s foundry push and create a viable second source to TSMC for Apple’s most advanced chips. The article notes Intel is ramping capacity at a new Arizona fab producing on its 18A node (with an improved 18A‑P node expected later) while Apple has been solely reliant on TSMC. Analysts suggest the deal addresses wafer-capacity constraints driven by surging AI demand and could reshape advanced-node supply dynamics if finalized.
Intel foundry signs Fortinet for security chips
Intel’s foundry has secured Fortinet as a named customer to manufacture the cybersecurity firm’s next-generation security chip, SP6. Fortinet’s SP6 will be produced on Intel 4 process technology, the companies said. Fortinet is the first publicly announced corporate foundry customer under Intel CEO Lip-Bu Tan, who became CEO in March 2025. The article notes Intel’s more advanced process nodes (14A and 18A) and that Intel 4 is an older node typically used for simpler ASICs. The piece also references prior low-volume foundry relationships announced under Intel’s previous leadership and other collaborations — including work with the U.S. government, Google, Microsoft, Amazon, Tesla, SpaceX and a claimed comment about Apple — as context for Intel’s broader foundry efforts.
Intel posts huge earnings beat; analysts remain mixed
Intel reported a significant second-quarter beat, delivering $0.42 non-GAAP EPS versus $0.21 expected and $16.1 billion in revenue, up 25% year-over-year. Shares rose in after-hours trading and are up about 172% year-to-date in 2026 as the company benefits from stronger demand for CPUs tied to the AI boom. Under CEO Lip‑Bu Tan, Intel is pushing its foundry strategy and reaffirmed production of its 14A and 18A process nodes, saying 18A output is roughly 25% above target and up over 50% quarter-over-quarter. Major Wall Street firms largely kept existing ratings: Wells Fargo (equal weight), Goldman Sachs (neutral), JPMorgan (underweight), Bank of America (buy) and Bernstein (market-perform), while raising various price targets.
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