Intel chief executive Lip-Bu Tan has said the company is seeing stronger momentum in its push to become a major manufacturing partner for other chip designers, as the U.S. semiconductor group works to revive its business.
Tan told CNBC’s “Mad Money” that Intel’s foundry division, which produces chips for external customers, is becoming a key part of the company’s turnaround after years of manufacturing setbacks and tougher competition.
“Foundry is very important,” Tan told Jim Cramer on CNBC’s “Mad Money.” “It’s one of the key national treasures.”
The strategy marks a significant shift for Intel, which historically made chips mainly for its own personal computer and data centre businesses. Under former chief executive Pat Gelsinger, the company committed heavily to opening its factories to outside clients in an effort to compete with Taiwan Semiconductor Manufacturing Co., the world’s leading contract chipmaker.
Tan, who became chief executive in March 2025, said Intel is making progress with its 18A process, an advanced manufacturing technology seen as a major test of whether the company can regain ground in cutting-edge chip production. He said the process was “not good” when he arrived.
“Now I’m seeing it,” said Tan, who led chip design software maker Cadence Design Systems from 2009 to 2021 and had a two-year stint on Intel’s board that ended in 2024.
He also pointed to improving manufacturing yields, which measure how many usable chips are produced from each wafer. Higher yields are essential for reducing costs, improving profitability, and convincing customers that Intel can handle advanced production reliably.
“The best practice is to see 7% or 8% yield improvement per month, and now I’m seeing it,” he said.
Tan said the improvements have helped draw interest from potential customers, though he declined to name specific companies. His remarks came after reports that Intel and Apple had reached a preliminary agreement for Intel to produce some Apple chips.
“Multiple customers, they are working with us,” he said. “We are looking forward to serve them.”
Tan also said Intel’s foundry ambitions are important for strengthening U.S. chipmaking capacity, as much of the most advanced semiconductor production remains overseas.
“90 plus percent of the most advanced processor is manufacturing outside the country,” he said. “So, I think it’s important to bring some of them back.”
He added that Intel’s future 14A technology could help the company better compete with TSMC.
“It will be the same time as TSMC,” he said. “That is a major, major breakthrough.”