Intel's foundry business is expanding at an alarming rate. Following the launch of a new IDM model and independent accounting of the foundry manufacturing department's financial reports, the company's IFS foundry service revenue reached US$232 million in the second quarter of 2023, year-on-year. 307% increase! However, Intel may face some challenges in its goal and plan to become the world's second-largest contract chipmaker.
According to recent media reports, it is expected that in 2023, only Apple will launch the first 3nm chip in the world, while Qualcomm plans to continue to use TSMC's N4P process in the Snapdragon 8 Gen 3 chip released by the end of this year. In addition, Tianfeng International analyst Ming-Chi Kuo reported that Qualcomm may also choose to cooperate with Samsung to develop its own 3nm chips, which means that Qualcomm may have stopped developing Intel 20A chips.
Currently, Intel is still steadily advancing five process nodes in four years as planned, including the new Intel 20A (roughly understood as 2nm) and Intel 18A (1.8nm), both of which will introduce PowerVia back-side power supply and RibbonFET full surround New technologies such as gates. Intel 18A will be the key for Intel to regain the commanding heights of advanced technology.
Although Intel has signed foundry agreements with Arm and Ericsson for the Intel 18A process, there is no doubt that the lack of cooperation with first-line IC design manufacturers like Qualcomm will have an adverse impact on the learning curve of new technologies such as RibbonFET and PowerVia, thereby increasing Intel’s 18A Uncertainties and risks in R&D and mass production.
In addition, Intel's expansion in foundry business is also facing competitive pressure. As the world's leading chip foundry, TSMC has advanced process technology and cooperative relationships with first-line IC design manufacturers. This makes Intel face certain challenges in attracting first-tier IC design manufacturers to cooperate.
In short, Intel's foundry business faces some challenges, including Qualcomm possibly stopping the development of Intel 20A chips and cooperation and competition with first-tier IC design manufacturers. However, with the recovery of the smartphone market and the consideration of foundry costs, cooperation between Qualcomm and Intel remains a possibility.