Intel opened its Intel Foundry Direct Connect customer-focused event Tuesday in San Jose with a keynote by CEO Lip-Bu Tan, less than a week after he revealed billions of dollars in reductions in operating and capital budgets in coming years.
While 100,000 Intel workers are waiting to see how those budget cuts might affect their jobs, the Direct Connect event is focused more on the nitty gritty of how a traditional bureaucracy-driven entity that is arguably the central icon of American technology is supposed to make and package semiconductors so that a single chip will reach 1 trillion transistors by 2030.
It is a grand goal.
But with AI taking center stage for the entire electronics industry, customers are interested to hear how Tan can catapult Intel beyond its financial and production quagmire to be seen as an AI star beyond the AI PC.
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Tan and others have already has boasted that Intel has engaged with lead customers on its Intel 14A process technology, the successor to Intel 18A. Unnamed lead customers have an early version of the Intel 14A Process Design Kit and multiple customer have expressed intent to build test chips on the new process node.
Significantly, Intel 14A will feature PowerDirect, a direct contact power delivery which builds on Intel’s PowerVia backside power delivery technology seen in Intel 18A.
As Tan outlined for investors last week, Intel 18A is now in risk production and expected to reach volume manufacturing in 2025. Intel Foundry’s partners have electronic design automation (EDA) enablement, reference flows and IP ready for production designs now, the company has said.
There is also an 18A variant called 18A-P with enhanced performance for broadening the number of customers Foundry can attact. Also, early wafers based on 18A-P are in the fab now and IP and EDA partners have begun updates for the variant.
Synopsys, others takes a big role in Intel Foundry
One such partner, Synopsys, announced early Tuesday it has just certified AI-driven digital and analog design flows for the Intel 18A process node in addition to production-ready EDA flrow for Intel 18A-P including RibbonFET gate-all-around transitor architecture and PowerVia backside power delivery.
Synopsys said it was involved in early co-optimization for Intel 18A to enhance power, performance and chip area and is now engaged in early design co-optimization for 14A-E.
Also, Synopsys is a founding member of the Intel Chiplet Acceleration Alliance. And, Synopsys is collaborating to enable EMID-T, an advanced packaging technology powered by a Synopsys compiler and IP.
In addition to Synopsys, executives from Cadence, Siemens EDA and PDF Solutions joined Tan on stage at Direct Connect to talk about their support of 18A and other other process nodes.
18A will be produced in Oregon
Separately, Intel said it is working with Amkor to improve customer flexibility in picking the right advanced package approach. Intel Foundry offers integration of Intel 14A on Intel 18A-P, which is connected via Fovoros Direct, a 3D stacking technology, and other techniques.
Prior to the Tan keynote, Intel revealed its Fab 52 in Arizona has run the first wafer through its facility, a demonstration of domestic manufacturing of leading-edge Intel 18A wafers. Intel 18A volume production will begin in Intel’s Oregon fabs as Arizona manufacturing ramps up.
Intel has been explicit in saying all of its Intel 18A and Intel 14A research, development and wafer production will be US-based. President Trump has made domestic manufacturing of semiconductors and other manufactured products a priority, and Intel announced in its earnings call it has received more than $1 billion in US CHIPS Act funds. Intel was the largest grant recipient under the Act, with more than $8 billion for domestic semiconductor manufacturing. However, many companies are reporting major tax savings with the Act’s 25% tax exemptions on capital spending.
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Geopolitics matters greatly to Intel
While Tan and Intel are focused on customers at the Direct Connect, there are geopolitical developments that could matter greatly in how Intel competes and thrives.
The world’s biggest advanced chip maker , TSCM, is based in Taiwan and recently Taiwan’s legislature passed a law to ensure TSMC’s latest manufacturing trechnology remains in Taiwan and that TSMC fabs overseas are at least one generation behind.
“It’s an interesting move that could backfire,” noted analyst Patrick Moorhead of Moor Insights & Strategy. “If Intel can keep accelerating, this has to be good for them…Hypothetically, you could run an Intel node on TSMC equipment as they share a bunch of it.”
The Direct Connect 2025 event took many technology directions, but Tan also took the opportunity to summarize Intel's commitment to Intel Foundry. When asked by customers if Intel is committed to the Foundry, he said, "the answer is yes...I am committed to make the Intel Foundry successful, there are areas we need to improve."