Intel Foundry Renaissance: How New CEO Lip-Bu Tan Is Reshaping Intel Future

Updated: May 04 2025 06:59

AI Summary: Intel's Direct Connect 2025 event, led by new CEO Lip-Bu Tan, highlighted a significant strategic shift positioning Intel Foundry as central to capturing the trillion-dollar semiconductor market driven by AI. The company emphasized improved execution, strengthened roadmaps featuring advancements like RibbonFET and PowerVia on Intel 18A, and a new focus on earning customer trust through service, partnership, and ecosystem collaboration, a departure from its historical self-sufficiency.

Intel's Direct Connect 2025 event unveiled the company's ambitious vision for its foundry business. With new CEO Lip-Bu Tan at the helm for just five weeks, the message was crystal clear: Intel Foundry is no longer just another division—it's central to the company's strategy in capturing a piece of the trillion-dollar semiconductor opportunity ahead.



If there's one thing industry veterans know about Lip-Bu Tan, it's his reputation for straight talk and execution. The former Cadence CEO wasted no time addressing the elephant in the room: "Is Intel really committed to the foundry business?" His answer was an emphatic "Yes," backed by a humble acknowledgment that Intel needs to improve execution, strengthen roadmaps, and—perhaps most importantly—earn customer trust every single day.


This last point resonated throughout the keynote. The "new" Intel Foundry isn't just about silicon—it's about service, partnership, and creating an ecosystem where customers can succeed. It's a dramatic shift from the Intel of old, which often projected an aura of technological superiority and self-sufficiency.


The stakes couldn't be higher. According to Intel's projections, the semiconductor market is heading toward $1 trillion by 2030, propelled largely by the insatiable appetite of AI applications for computing power. Intel is positioning itself as uniquely qualified to capture a significant portion of this growth as the only company performing leading-edge semiconductor R&D and manufacturing on American soil.


This positioning isn't just about technological prowess—it's equally about geopolitical realities. In a world increasingly concerned about supply chain resilience and technological sovereignty, Intel's massive manufacturing footprint across the United States, Europe, and Asia represents a compelling differentiator against competitors like TSMC.


At the heart of Intel's foundry proposition is its process technology roadmap, which Dr. Naga Chandrasekaran, EVP and GM of Intel Foundry, outlined in impressive detail. After investing a staggering $90 billion over the last four years (approximately 20% for R&D, 80% for manufacturing expansion), Intel's technology pipeline looks stronger than it has in years:

• Intel 16 is already running customer wafers (notably MediaTek) in Ireland
• Intel 3 & 4, the company's first EUV nodes, are ramping in production
• Intel 18A, featuring groundbreaking RibbonFET transistors and PowerVia backside power delivery, has entered risk production with engineering samples already delivered

Perhaps most impressive is Intel's rapid iteration on its 18A platform. Based on customer feedback, they've already developed 18AP (with enhanced performance characteristics) and 18A PT (adding Through-Silicon Vias for advanced AI applications). Looking further ahead, 14A promises 15-20% performance/watt improvements and 30% density scaling over 18AP, leveraging High-NA EUV technology.



What's notable here isn't just the technology itself, but how Intel is developing it—with extensive customer input from the beginning, a significant departure from past approaches.


In perhaps the most forward-looking portion of the keynote, Intel articulated its vision as a "Systems Foundry"—recognizing that today's computational challenges often require complex multi-die solutions rather than monolithic chips.



Kevin O'Buckley, SVP and GM, showcased how Intel's advanced packaging technologies are evolving to support customer visions for massive systems (exceeding 12x reticle size, or approximately 120x188mm) featuring multiple chiplets, HBM memory, and optical connections:

• EMIB (Embedded Multi-die Interconnect Bridge) continues to evolve with EMIB-T, adding TSVs to the silicon bridge for improved power/signal integrity
• Foveros, Intel's 3D stacking technology, is expanding with lower-cost options (Foveros B/Foveros R) and advanced hybrid bonding (Foveros Direct)
• Co-Packaged Optics integration is bringing optical I/O closer to silicon for transformative improvements in bandwidth, latency, and power efficiency

Critically, Intel announced it's opening up its advanced packaging ecosystem—partnering with Amkor to qualify and offer EMIB assembly as an OSAT service by end-of-2026, giving customers supply chain diversification options. This openness marks another significant cultural shift for a company once known for keeping its most advanced technologies proprietary.


Perhaps the most dramatic shift in Intel's foundry approach is its wholehearted embrace of industry standards and ecosystem collaboration. The keynote featured an unprecedented parade of EDA and IP partners, including leaders from Synopsys, Cadence, Siemens EDA, and PDF Solutions, all emphasizing deep technical collaboration with Intel.


Sashin Ghai from Synopsys noted the "desperation for optionality" among customers and praised the significant reduction in design effort now required for Intel processes, making them comparable to industry standards. Anirudh Devgan of Cadence spoke about leveraging AI within EDA tools to improve PPA (Power, Performance, Area) and productivity, while Mike Ellow from Siemens EDA focused on DFM (Design for Manufacturability) and the importance of predictability in cost, yield, and schedule.

John Kibarian of PDF Solutions highlighted the critical need to co-optimize process and design from the beginning, particularly at advanced nodes below 7nm, using electrical data as the "lingua franca" to connect R&D, design, and manufacturing.

This embrace of the broader ecosystem represents a fundamental philosophical shift for Intel—acknowledging that success in the foundry business requires seamless integration with the tools, IP, and workflows that customers already use and trust.


While technology innovation is crucial, manufacturing scale and reliability ultimately determine a foundry's success. Intel showcased its expanding global manufacturing network, emphasizing both capacity and geographic diversification:

• Israel: Intel 7 fully ramped and 100% utilized
• Ireland: Intel 4/3 EUV ramping, Intel 16 foundry learning
• Arizona: 18A ramping, with the UMC 12nm joint venture progressing
• New Mexico: Emerging as an Advanced Packaging hub
• Malaysia: New advanced packaging facility under development
• Ohio: Prepared for rapid expansion based on customer demand

Intel highlighted its significant existing front-end and back-end capacity, with shelled space ready for expansion within 6-8 quarters as customer demand materializes. The company is also leveraging automation aggressively, showcasing "Chip"—a Boston Dynamics robot dog used for automated facility monitoring through thermal imaging and data collection to improve efficiency and predictive maintenance.



Beyond the technology and manufacturing capabilities, Intel leaders emphasized a crucial internal transformation toward a true foundry mindset. Naga Chandrasekaran outlined four pillars driving this change:

1. Predictability: While acknowledging they aren't there yet, reliable execution and delivery is recognized as paramount to earning customer trust
2. Quality: Shifting from test-based detection to inline prevention through heavy investment in inline metrology and process control
3. Velocity: Moving faster in the right direction to get customers to market quicker
4. Affordability: Driving efficiency and better capital utilization ("no capex left behind")

This cultural pivot involves moving away from rigid "copy exact" processes, embracing an "outside-in" view, and most importantly, listening intently to customers and partners. For a company long accused of arrogance and insularity, this represents perhaps the most profound change of all.



The strategic importance of domestic semiconductor manufacturing was highlighted throughout the event, with Intel recognizing the US Government as a key foundational customer. Programs like Ramp, Ramp-C, SHIP, and the Secure Enclave are enabling secure, end-to-end R&D and manufacturing capabilities for critical applications within the US, leveraging advanced nodes like 18A and sophisticated packaging solutions.

This government connection represents both a strategic advantage and a significant responsibility for Intel as geopolitical tensions elevate the importance of technological self-sufficiency.



Intel Direct Connect 2025 painted a compelling picture of a company transforming itself to compete in the foundry business at the highest levels. The combination of cutting-edge process technology, advanced packaging leadership, manufacturing scale, ecosystem collaboration, and a renewed customer-first culture suggests Intel is serious about becoming a major player in semiconductor manufacturing for others.


Yet challenges remain. Intel must demonstrate consistent execution after years of delays and setbacks. It must build trust with potential customers who may be wary of Intel's history as both a competitor and supplier. And it must navigate the complex economics of the foundry business while continuing to invest heavily in R&D and manufacturing capacity.

But the opportunity is enormous. As AI continues to drive unprecedented demand for semiconductor manufacturing, and as geopolitical concerns spur interest in supply chain diversification, Intel stands poised to offer a compelling alternative in the foundry landscape. With its combination of technological prowess, manufacturing scale, and renewed customer focus, Intel Foundry may well be positioned to capture a significant share of that trillion-dollar opportunity ahead.


The coming months will reveal whether Lip-Bu Tan's vision for Intel Foundry can become reality. But if the Direct Connect 2025 keynote is any indication, Intel is bringing unprecedented focus, investment, and humility to the challenge.