Intel winning big? Apple evaluating 18A-P, Google interested in EMIB, Tesla already signed for 14A

Intel’s foundry business is experiencing long-awaited breakthroughs on multiple fronts.

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

With multiple positive signals converging, the narrative of Intel foundry’s recovery is becoming clearer. According to a Wallstreetcn article, Intel CEO Lip-Bu Tan mentioned during last week’s earnings call that, as inference and agent AI are scaling up, server CPU demand is rebounding, and the CPU-to-GPU ratio has shifted from about 1:8 toward 1:1. This structural change has directly boosted interest in Intel’s foundry platform.

On the financial side, the latest earnings report shows that Intel’s foundry division narrowed its Q1 operating loss to $2.4 billion, improving by $72 million quarter-on-quarter, with yield improvement as the main driving factor.

Apple and Google reportedly evaluating Intel platform

According to media sources citing supply chain insiders, Apple is evaluating migrating 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 possibly launching as early as 2027.

It should be noted that this information is still at the media reporting stage and has not been officially confirmed by Apple or Google; whether these evaluations will ultimately translate into orders remains uncertain.

Nevertheless, the report alone is an important signal. Analysts believe that the global surge in AI chip demand is prompting customers to seek a secondary supply source, significantly elevating the strategic status of Intel’s foundry business.

For major tech firms long reliant on single foundry sources, the need for supply chain diversification is becoming more urgent amid current geopolitical and capacity competition contexts.

Tesla signs for 14A, Intel foundry secures its first external customer

Compared to Apple and Google, who are still at the evaluation stage, Tesla’s collaboration with Intel has been confirmed.

According to Reuters, Elon Musk stated that Tesla plans to use Intel’s next-generation 14A process to manufacture dedicated chips for its Terafab AI complex in Austin, Texas.

This cooperation makes Tesla the first known external customer for Intel’s 14A process, marking a milestone for the commercialization of Intel's foundry business.

The report notes that the 14A process is seen as Intel’s next-generation technology node following 18A. Tesla’s early commitment not only gives substantial order backing to Intel’s foundry but also sends a message to the market that the 14A technology roadmap is becoming increasingly credible.

18A yield improves, client chip validation begins

The 18A process is the core pillar of Intel's foundry recovery strategy. According to TrendForce citing media reports, customers have already started validating test chips at the 18A node, core design flow is largely complete, and development of the enhanced 18A-P process is underway in parallel.

Intel CFO David Zinsner said during the earnings call that Q1 yield improvements covered Intel 4, Intel 3, and 18A nodes, directly supporting the reduction of foundry division losses.

For internal mass production, Intel’s flagship mobile processor Panther Lake and Clearwater Forest server CPUs both use the 18A process.

According to Tom’s Hardware report, Intel began small-batch wafer production of the Core Ultra 300 series "Panther Lake" CPUs at its Oregon development facility at the end of 2025, while simultaneously ramping up mass production at Arizona’s Fab 52.

Market watchers point out that the unexpectedly rapid progress in 18A yield and PDK (Process Design Kit) readiness are gradually restoring confidence in Intel’s foundry business.

AI reshapes CPU demand, foundry strategy value re-evaluated

The potential recovery of Intel’s foundry business is closely tied to structural changes in AI computing architectures.

Lip-Bu Tan mentioned during the earnings call that, as agent AI, physical AI, and edge AI emerge, CPUs are regaining their roles as the scheduling and control core in AI systems. The convergence of CPU and GPU ratios toward 1:1 implies a substantial rebound in server CPU demand.

This trend’s strategic significance for Intel’s foundry is: the explosive demand for AI chips is prompting tech giants to actively pursue diversified foundry layouts, and Intel, through its advances in 18A and 14A processes, is positioning itself as a credible alternative to TSMC.

Analysts believe that, besides internal capacity absorption, onboarding external customers will be key for Intel foundry to achieve scalable profitability. Currently, from yield improvement to client validation, and with Tesla’s official signing, the commercialization of Intel foundry is progressing well along this path.

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