What's Happening?
Intel has announced Fortinet as its first named external customer for its foundry services, marking a significant step in Intel's efforts to revitalize its foundry business. The deal involves the development of Fortinet's Security Processor 6 (SP6), which
will be used in future FortiGate firewall appliances. This collaboration will utilize Intel's chip design, packaging, and manufacturing capabilities, with the SP6 being built on Intel 4 at Fab 34 in Leixlip, Ireland. This development comes as Intel aims to demonstrate its ability to attract serious outside chip designers, moving beyond promises to tangible partnerships.
Why It's Important?
This partnership is crucial for Intel as it seeks to re-establish itself as a competitive player in the foundry market, traditionally dominated by companies like TSMC and Samsung. By securing Fortinet, a major player in the cybersecurity hardware market, Intel gains a proof point in custom networking ASICs, which could enhance its credibility and attract more customers. The deal also reflects Intel's strategic shift towards diversifying its customer base and reducing reliance on its internal chip production. This move could potentially lead to increased revenue and market share in the foundry sector.
What's Next?
Intel is expected to continue pursuing additional external foundry customers, with commitments anticipated in the second half of 2026. The company is focusing on improving its 18A process yields, which it describes as its most significant node upgrade in over a decade. Success in these efforts could position Intel to compete more effectively against industry leaders and secure more high-profile partnerships. The outcome of these initiatives will be closely watched by investors and industry analysts as indicators of Intel's long-term viability in the foundry market.
