Intel CEO Lip-Bu Tan Calls Foundry a “National Treasure” as External Customers Knock on His Door After 18A Yield Turnaround

Daniel Nenni · 2026-05-19T07:48:11-0700

Intel CEO, Lip-Bu Tan, says that its Foundry Business is a National Treasure, and continues to see more customers line up for its advanced packaging and process technologies.

Intel Founry Sees Massive Interest From Several External Customers, Many Already Prepaying For Substrates

During today's Mad Money Show with Jim Cramer of CNBC, Intel's CEO, Lip-Bu Tan, talked about the company's Foundry business and how the AI buzz is pushing more customers towards it.

Right off the bat, Lip-Bu said that the "Foundry is very important", calling it a national treasure. He says that currently, 90% of the most advanced processors are manufactured outside of the US, and it is a task in itself to bring production back to the United States. Intel has seen backing by US President Donald Trump, and Lip-Bu mentioned that the President of the US is one of his biggest supporters.

This can be linked to the recent TeraFab and Apple deals, where Intel has managed to bag both in a multi-year chipmaking agreement. Both companies will be utilizing Intel's latest Foundry technologies to make their upcoming products.

Intel 18A wafer

But it wasn't all that great. Lip-Bu recalled the time when he took over as CEO. At that time, yields of the 18A process tech weren't that great, and he worked with partners to resolve the shortcomings and bring the yield improvement rates on par with the industry standard, which is 7-8% per month.

The results are starting to show, and now 18A is ramping up well with Panther Lake CPUs set to see a massive volume increase in the coming months. But that's not only encouraging for Lip-Bu, but also for external partners who are now asking to open up 18A for them too.

Yeah, I think the Foundry is very important, actually is one of the key national treasures because 90 plus percent of the most advanced processor is manufactured outside the country. So I think it's important to bring some of them back.

And then when I took over the 18A, the yield is not good. And I had to ask some of the ecosystem partner to help me to look at the data, how to improve. The industry standard, the best practice, is to see 7 or 8% yield improvement per month. And now I'm seeing it. And then the other part is supposed to be at the yield performance, defect density, you know, at the end of the year to see that particular target. And now I was so happy. Now I see that before even the end of the year.

So that is a very big encouragement for me. And also, that's why Panther Lake, we can ship in volume now. And then now some of the customers, I think, to knock on my door. Now we hear that you're making great progress. Can you also open up for outside customers to do that.

Lip-Bu Tan - Intel CEO

While Intel is seeing massive interest from external customers and is already engaged with various firms, Lip-Bu said that it is his policy not to disclose or name a customer, but based on his days at Intel and at Cadence, there are many companies and people that trust him and want to work with him.

Apple and Intel logos on a blue digital background, glowing prominently.

Yeah, first of all, in my personal policy, I don't disclose of a customer. But you can draw the line, look at the customer from Intel, from Cadence, some of them, they trust me, they want to work with me.

Lip-Bu Tan - Intel CEO

Further highlighting his Foundry projects and future technologies, Lip-Bu mentioned 14A, which is the company's upcoming process node designed primarily for external customers besides the 18A-P node.

Intel calls 14A their most advanced process technology to date, measuring 1.4nm, and the tech is all set for risk production by 2028, and volume production in 2029. Apple is said to be one of the customers to leverage 14A, while Elon Musk's TeraFab is also going to use it for making their own AI chips.

A presenter speaks on stage in front of screens displaying 'Delivering On Our Silicon Commitments' and 'intel 14A' at an Intel Foundry event.

But Lip-Bu is all set to compete with TSMC's 1.4nm with its own 14A 1.4nm tech, at the same time. Lip-Bu calls this a "major breakthrough" and also mentions multiple customer engagements on 14A with the PDK 0.5. The PDK 0.9 is said to roll out soon.

And then the other part, the most advanced, is 14A.

This is 1.4 nanometer. This is the most advanced. And then, to be candid with you, 2028, we will have risk production. 2029 will be volume production. It will be the same time as TSMC. So that is a major, major breakthrough. And so I'm excited. And we already have multiple customers engaged with us. We have 0.5 PDK available.

Lip-Bu Tan - Intel CEO

Another major technology that is talked about by Lip-Bu is EMIB, which he calls one of the most advanced and best technologies for chip packaging. EMIB was recently said to have reached 90% yields and is aiming for the next milestone to make it viable for external customers.

Intel Achieves A Phenomenal 90% EMIB Yield As Per Analyst, EMIB-M For Efficiency & EMIB-T For Massive >12x Reticle Packages In 2028 1

But besides that, Intel is also receiving pre-payments from many customers on substrates. Substrates are just as crucial as the chip, because without a substrate, there's no base for the chip to sit on. Ajinomoto has already been reported to run short on ABF substrates, and is hiking up prices as supply constraints continue to grip the industry.

This is the next generation of advanced packaging, and that we have really the best technology. And now we try to make sure that we can bring it into a volume production with reliable yield so the customer can count on us. And in fact, a couple of customers even prepaid some of the substrate for me. And because right now, substrate has become a very tight supply chain. So I need to put money to secure this material. And then right now the customer supports me to pay some of the advance, that shows that commitment to me.

Lip-Bu Tan - Intel CEO

And the demand for CPUs has also exploded, with Intel even reusing its subpar dies to meet demand. Lip-Bu says that one customer asked him if he could increase his forecast by 3x overnight, and Lip-Bu replied to him, saying that they can't do that overnight, but maybe in a few quarters. He says that the Agentic AI surge has led to a massive demand for CPUs, and it is not a short-term but a long-term demand that will last for the next couple of years.

No, actually, you have to take a step because overnight, give you one example, I have one customer. So basically, we give you the forecast for this year, but we want to increase three times. And I say I can't do it overnight, give me a few quarters, I will catch up with you. So I think in a way, this demand is not short-term, it's the next couple of years.

Lip-Bu Tan - Intel CEO

Intel’s Foundry business is showing clear signs of a turnaround under Lip-Bu Tan’s leadership. With improving yields on 18A, strong progress on the competitive 14A node, high-yield advanced packaging, and customers willing to prepay for capacity, Intel is successfully positioning itself as a credible alternative to TSMC.

Backed by strong U.S. government support and driven by surging AI demand, the company is steadily winning external customers and strengthening America’s semiconductor sovereignty. While challenges remain, Tan’s message is optimistic: Intel Foundry is regaining momentum and is poised for long-term growth in the AI era.