Intel takes a major step toward turning around a business that’s bleeding cash

June 17, 2026 - 04:34

Intel has reached a critical technical milestone in its latest manufacturing process, a development that analysts say signals growing confidence in the company's ability to attract outside clients. The move is a major step in the chipmaker's long and expensive effort to turn around its foundry business, which has been losing significant amounts of money.

The company confirmed that its Intel 18A process node has entered the "risk production" phase. This is the stage where a chipmaker starts running early test wafers for customers before full-scale volume manufacturing begins. It suggests that the technology is stable enough for potential clients to start designing their own chips around it.

This progress is crucial for Intel's strategy under CEO Pat Gelsinger. The company is betting its future on becoming a top-tier contract manufacturer, competing directly with TSMC and Samsung. However, the foundry division has been a major financial drain, reporting billions in operating losses over the past year as Intel spends heavily on new equipment and research.

Analysts view the risk production milestone as a necessary, though not final, hurdle. The real test will come when Intel can announce a major external customer willing to commit to the 18A process. Without a marquee client, the billions spent on building new factories in the US and Europe will remain a heavy burden on the company's bottom line. For now, Intel appears to be on schedule, but the financial turnaround is still a long way off.