[News] Intel Reportedly Has 30% Wafers Outsourced, Hails TSMC as a Great Supplier

While Intel pushes ahead with its 18A and advanced node roadmaps, the company’s ambition to boost its foundry business appears evident. However, according to Tom’s Hardware and information provided by Seeking Alpha, as the company initially aimed to eliminate its reliance on TSMC a year ago, it would no longer be the plan.

Citing John Pitzer, Intel’s VP of corporate planning at an investor conference, Tom’s Hardware notes that Intel currently has 30% of its wafers outsourced.

Panther Lake and 18A Could Be Game Changers

“We think it’s always good to have at least some of our wafers with TSMC. They’re a great supplier,” Pitzer said, adding that the scenario creates a good competition between the Taiwanese foundry giant and Intel Foundry.

As highlighted by Tom’s Hardware, Intel currently relies on TSMC to produce silicon for its Arrow Lake and Lunar Lake processors, which are then assembled using its own Foveros 3D packaging technology. However, this results in a premium payment to TSMC, impacting Intel’s gross margins, the report suggests.

The success of Panther Lake and 18A is therefore crucial, as Intel plans to use its own cutting-edge facilities, like Fab 52 and Fab 62 in Arizona, to produce the compute chiplet with 18A technology, as noted by Tom’s Hardware. With most of the manufacturing done in-house, Intel expects higher gross margins for its next-generation products, according to the report.

Intel Foundry to Break Even in 2027

Notably, as per Seeking Alpha, Pitzer reiterated Intel’s goal of becoming the second-largest external foundry by 2030, aiming for around $15 billion in revenue. Though it would reportedly potentially give Team Blue less than 10% market share, the company believe it’s a realistic and achievable target.

The information provided by Seeking Alpha reveals that Intel aims to break even on Intel Foundry’s operating profit by the end of 2027, mainly driven by Intel products and the shift to Intel 18A.

According to Intel’s financial report, Intel Foundry incurred a $13.4 billion loss in 2024, with a 7% year-on-year decline in revenue, totaling $17.5 billion. The company expects Panther Lake to begin production in the second half of 2025, claiming the processor will be a key product for commercial customers in 2026.

Read more

• [News] Intel Reportedly Doubles Down on Panther Lake as Key Product for Commercial Customers in 2026
• [News] Intel’s Panther Lake Mass Production Reportedly Slips to 4Q25: More 18A Hurdles Ahead?

(Photo credit: Intel)