What's Happening?
Intel's foundry business has recently secured Fortinet as a client, marking a significant step into the cybersecurity chip space. Under the agreement, Intel will manufacture Fortinet's next-generation
Security Processor 6, which supports the FortiGate firewall line. This deal is notable as Fortinet is the first named outside customer under Intel's CEO Lip-Bu Tan, who took the position in early 2025. The partnership allows Fortinet to shift away from Taiwan Semiconductor Manufacturing Co. (TSMC), which currently holds a 72% market share in the foundry industry. This move positions Intel as a potential competitor in the development of cybersecurity application-specific integrated circuits (ASICs).
Why It's Important?
The deal with Fortinet is crucial for Intel as it represents a strategic entry into the cybersecurity chip market, potentially challenging TSMC's dominance. This partnership could encourage other cybersecurity companies to consider Intel as a viable manufacturing partner, thereby expanding Intel's market share in the foundry industry. For investors, this development signals a potential growth area for Intel, although the company's high valuation may deter immediate investment. The foundry unit's revenue growth, which exceeded company targets, suggests that this segment could significantly influence Intel's stock performance in the future.
What's Next?
Intel's collaboration with Fortinet could pave the way for additional partnerships in the cybersecurity sector. If Intel can continue to secure similar deals, it may establish a strong foothold in this niche market, further challenging TSMC. Investors and industry analysts will likely monitor Intel's ability to leverage this deal to attract more clients and expand its influence in the cybersecurity chip space.
