by Stephen Nellis and Max A. Cherney
(Reuters) – Intel said on Wednesday it expects to overtake its main rival TSMC in manufacturing advanced chips this year, ahead of its 2025 deadline, and plans to maintain that lead beyond 2026.
The U.S. computer giant is expected to make the announcement at an event in San Jose, California, for the first conference of Intel Foundry, the contract manufacturing division set up to compete with Taiwan. Semiconductor Manufacturing.
Intel plans to overtake TSMC in manufacturing the most advanced chips later this year, with its manufacturing technology dubbed “Intel 18A,” and extend its lead through 2026 with a new technology called “Intel 14A.” “.
This is the first time the group has given details of its plans after 2025, the deadline set by Pat Gelsinger, who became CEO three years ago, to overtake TSMC in advanced chips.
For decades, Intel only manufactured chips for its own consumption, taking advantage of its technological lead to charge a premium price for its excellent products – which allowed it to finance new technological developments. But the group’s advantage has eroded, which has weighed on margins and investment capacities.
The company is now counting on billions of dollars in subsidies from the U.S. government and external demand to help it rebound.
One of Intel’s arguments lies in its geographical footprint, the group having factories on several continents, while TSMC’s foundries are concentrated in Taiwan.
“It’s a strong argument right now,” notes Stu Pann, head of Intel Foundry.
Intel says four “big” customers have signed up for its 18A manufacturing technology, without naming them.
It also has technology that analysts say will be useful in improving the performance of power-hungry artificial intelligence chips. Industry leader Nvidia has said it will study Intel’s technology, but the two companies have not announced a deal.
Attracting outside customers “is the key to the turnaround” of Intel, according to Ben Bajarin, managing director of the consulting firm Creative Strategies.
“Unfortunately, it will be two or three years before we know if the strategy is working.”
(Reporting Stephen Nellis and Max Cherney in San Francisco, French version Corentin Chappron, editing by Kate Entringer)
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