Is Intel Winning Big? Apple Evaluates 18A-P, Google Eyes EMIB, Tesla Signs for 14A

Intel's foundry business is experiencing long-awaited breakthroughs across multiple fronts.

On April 28, according to TrendForce, Apple is reportedly evaluating the adoption of Intel's 18A-P process for producing M-series chips, while Google is considering leveraging Intel's EMIB advanced packaging technology to advance its TPU v8e project. Meanwhile, Tesla has confirmed it will use Intel's next-generation 14A process for its Terafab AI complex in Austin.

The convergence of these positive signals is making the recovery narrative for Intel's foundry business increasingly clear. As mentioned in an article by Wallstreetcn, during last week's earnings call, Intel CEO Lip-Bu Tan pointed out that demand for server CPUs is recovering as inference and agent-based AI scale up. The ratio of CPUs to GPUs is shifting from the previous level of approximately 1:8 toward 1:1. This structural shift has directly boosted external interest in Intel's foundry platform.

Financially, the latest earnings report shows that the operating loss of Intel's foundry division narrowed to $2.4 billion in the first quarter, a sequential improvement of $72 million, primarily driven by improved yields.

Apple and Google Reportedly Evaluating Intel Platforms

Citing supply chain sources, media reports indicate that Apple is evaluating bringing its M-series chips to Intel's 18A-P node, while Google is exploring the use of Intel's EMIB (Embedded Multi-die Interconnect Bridge) advanced packaging technology for its TPU v8e project, with related products potentially launching as early as 2027.

It should be noted that this information remains at the level of media reports and has not yet been officially confirmed by Apple or Google. Whether these evaluations will ultimately convert into orders remains uncertain.

Nevertheless, the report itself carries significant signaling value. The report states that some analysts believe the surge in global AI chip demand is driving customers to seek second sources of supply, a trend that significantly enhances the strategic position of Intel Foundry.

For large tech companies that have long relied on a single foundry source, the demand for supply chain diversification is becoming increasingly urgent against the backdrop of current geopolitical tensions and capacity competition.

Tesla Signs for 14A, Securing Intel Foundry's First External Customer

In contrast to the evaluation stages of Apple and Google, Tesla's collaboration with Intel has reached a confirmed status.

According to Reuters, Elon Musk stated that Tesla plans to adopt Intel's next-generation 14A process to produce custom chips for its Terafab AI complex in Austin, Texas.

This partnership makes Tesla the first known external customer for Intel's 14A process, marking a milestone in the commercialization journey of Intel Foundry.

The report points out that the 14A process is regarded as Intel's next-generation technology node following 18A. Tesla's early commitment not only provides substantive order endorsement for Intel Foundry but also sends a signal to the market that the credibility of the 14A technology roadmap is increasing.

18A Yield Improvement and Customer Chip Verification Underway

The 18A process is the core pillar of Intel Foundry's recovery strategy. Citing media reports, TrendForce stated that customers have begun testing chip verification on the 18A node, with core design processes largely completed. Development of the enhanced 18A-P process is also proceeding in parallel.

Intel CFO David Zinsner stated during the earnings call that yield improvements in the first quarter covered multiple process nodes, including Intel 4, Intel 3, and 18A, providing direct support for the narrowing losses in the foundry division.

Regarding internal mass production, Intel's flagship mobile processor Panther Lake and the Clearwater Forest server CPU both utilize the 18A process.

As previously reported by Tom's Hardware, Intel started small-batch production of wafers for the Core Ultra 300 series "Panther Lake" CPUs at its development facility in Oregon in late 2025, while simultaneously ramping up large-scale mass production at Fab 52 in Arizona.

Market observers point out that the better-than-expected progress in 18A yields and PDK (Process Design Kit) readiness is gradually rebuilding external confidence in Intel's foundry business.

AI Reshapes CPU Demand, Reassessing the Strategic Value of Foundry

The potential recovery of Intel's foundry business is closely linked to the structural evolution of AI computing architectures.

Lip-Bu Tan pointed out during the earnings call that with the rise of agent-based AI, physical AI, and edge AI, CPUs are once again becoming the scheduling and control core of AI systems. The convergence of the CPU-to-GPU ratio toward 1:1 implies a substantial rebound in demand for server CPUs.

The strategic significance of this trend for Intel Foundry lies in the fact that the comprehensive explosion in AI chip demand is driving tech giants to proactively seek diversification in their foundry layouts. Leveraging technological advancements in its 18A and 14A processes, Intel is positioning itself as a credible alternative to TSMC.

Analysts believe that beyond absorbing internal capacity, the onboarding of external customers will be the key path for Intel Foundry to achieve scalable profitability. Currently, from yield improvements to customer verification, and finally to Tesla's formal signing, Intel Foundry's commercialization process is advancing step by step along this path.

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