Analyst(s): Richard Gordon
Publication Date: May 23, 2025
At Direct Connect (April 29–30, 2025), Intel Foundry discussed its progress and priorities as the company ramps up the next phase of its foundry strategy under new CEO Lip-Bu Tan. A key theme through the event was the company’s desire to listen to its customers and earn their trust by improving execution and creating solutions to enable customer success.
At the event, in addition to providing updates on its customer-centricity transformation efforts, Intel Foundry provided a status update on its core fab processes and advanced packaging technologies, and announced new ecosystem programs and partnerships.
Key Points:
- Intel 18A process technology is now in risk production and expected to reach volume manufacturing by 4Q 2025.
- Intel’s updated advanced packaging technology roadmap includes Embedded Multi-die Interconnect Bridge-T (EMIB-T), enhancements to Foveros, Intel’s advanced 3D packaging technology, and Foveros Direct Cu-to-Cu Hybrid Bonding Interconnect technology.
- New programs have been added within Intel Foundry’s Accelerator Alliance – Intel Foundry Chiplet Alliance and Value Chain Alliance, along with a range of announcements from top ecosystem partners.
Overview:
Intel Foundry’s Direct Connect event, under new CEO Lip-Bu Tan, emphasized a cultural and operational transformation to compete in the foundry business, distinguishing itself from Intel’s traditional Integrated Device Manufacturer (IDM) model. The shift includes adopting a customer-first mindset, rethinking legacy approaches such as “Copy Exactly!”, and emphasizing agility, flexibility, and collaboration with external partners.
Technology Roadmap & Process Innovations:
Intel detailed updates on its cutting-edge process nodes. The Intel 18A node, now in risk production and set for volume manufacturing in late 2025, features RibbonFET transistors and PowerVia backside power delivery. Two variants – 18A-P and 18A-PT – enhance performance and efficiency, with 18A-PT supporting advanced 3D stacking via Foveros Direct. The forthcoming Intel 14A node, which adds PowerDirect technology, is already being tested by lead customers. Intel is also developing 16nm and 12nm nodes in collaboration with UMC, signaling broader foundry outreach.
Advanced Packaging Leadership:
Intel showcased its leadership in advanced packaging, including updates to Foveros (3D stacking) and EMIB (2.5D interconnect). New technologies such as Foveros-R and Foveros-B expand packaging flexibility, while a new partnership with Amkor enhances customer choice. Intel aims to become a top OSAT (Outsourced Semiconductor Assembly and Test) provider, offering comprehensive services including multi-die integration and test-only solutions.
Ecosystem Expansion:
Intel Foundry is strengthening its ecosystem with expanded programs under the Accelerator Alliance, including the new Chiplet Alliance focused on government and commercial applications. The company is promoting a robust IP and EDA partner ecosystem to support diverse customer needs and facilitate adoption of its technology platforms.
Strategic Repositioning & Customer Trust:
The leadership team identified three strategic pillars: Ecosystem & IP, Technology & Global Capacity, and Customer Service & Predictable Execution. Recognizing that traditional IDM practices may hinder foundry agility, Intel is decentralizing some decision-making to individual fabs – a concept it called “democratizing innovation.”
Geopolitical Advantage & Market Opportunities:
Intel is well-positioned as a U.S. “national asset” amid rising concerns about global supply chain resilience. It is actively supporting defense and national security initiatives via programs such as USMAG and RAMP-C. Moreover, with TSMC viewed as the dominant player, there is a strong market appetite for a credible alternative, especially among fabless semiconductor companies with high-performance products.
Execution Risks & Key Milestones:
Success hinges on two near-term proof points: achieving volume production on 18A by Q4 2025, and securing tier-1 customers. Demonstrated execution and early customer wins are essential to validate Intel Foundry’s strategy and build trust.
While long-term questions remain – including potential spin-off scenarios – the current focus is on proving the foundry model works within Intel. The company is setting realistic expectations, emphasizing humility, and focusing on execution, signaling a serious commitment to reshaping its future in the global semiconductor market.
The full report is available via subscription to the Semiconductors IQ service from Futurum Intelligence—click here for inquiry and access.
For more detailed insights from the event, see Intel Foundry Direct Connect April 2025.
Futurum clients can read more about it in the Semiconductors Intelligence Platform, and non-clients can learn more here: Semiconductors Practice.
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Image Credit: Intel
Author Information
Richard Gordon is Vice President & Practice Lead, Semiconductors for The Futurum Group. He has been involved in the semiconductor industry for more than 30 years, first in engineering and then in technology and market research, industry analysis, and business advisory.
For many years, Richard led Gartner's Semiconductor and Electronics practice, building a 20-person global team covering all aspects of semiconductor industry research, from manufacturing to chip markets and end applications. Having served on Gartner's Senior Research Board and as Gartner's Chief Forecaster, Richard has extensive experience in developing and implementing methodologies for market sizing, share and forecasting, to deliver data, analysis and insights about the competitive landscape, technology roadmaps, and market growth drivers.
Richard is a sought-after technology industry analyst, both as a trusted advisor to clients and also as an expert commentator speaking at industry events and appearing on live TV shows such as CNBC.
