Intel noted a reduction in defects in the Intel 4, 3, and 18A processes

Brief Summary

Intel discloses the results of its contract unit Foundry in a separate report. In the quarter the company increased revenue from $4.7 billion to $5.4 billion, but operating losses remained at $2.4 million. Nevertheless, the level of high‑quality production across all mass chips improved.

1. Financial Performance of Foundry
Metric Value Revenue (YoY) +$0.7 billion (from $4.7 billion to $5.4 billion) Operating loss –$2.4 million Profit margin –45 % (best figure in the last 5 quarters)
Chief Financial Officer David Zinsner highlighted that reducing defect rates in Intel 4, Intel 3 and Intel 18A process technologies improved profitability. However, expenses still exceed revenues, so losses persist.

2. Process Technologies and Their Implementation
- Intel 18A
- Adoption is progressing faster than the schedule.
- Accelerated deployment in mass production is planned, which could reduce the profit margin in Q2 from 41 % to 39 %.

- Intel 14A
- All first‑quarter goals have been met.
- PDK‑0.5 is currently available; by the end of the second half, PDK‑0.9 will be ready, enabling customers to begin designing chips on 14A.

3. Outlook and Partners
- Increasing In‑House Production
- Intel plans to produce more in‑house wafers for its processors, reducing dependence on TSMC and improving profitability next year.

- 14A‑Based Customers
- Potential buyers include Tesla and SpaceX.
- It has not yet been disclosed whether Tesla will use the Intel 14A process at its Terafab plant under license or if Intel will supply components from its own facilities.

Conclusion
Foundry shows revenue growth and improved product quality, but remains loss‑making due to high costs. Wider adoption of Intel 18A and increased in‑house wafer production are expected to boost profitability in the coming quarters. Meanwhile, 14A development is already gaining traction, and major customers such as Tesla and SpaceX could become key buyers.