Intel 18A Yields Surge, Packaging Breaks Through

According to international reports at the recent UBS Global Technology and AI Conference, Intel Vice President John Pitzer pushed back against rumors that Intel might spin off its foundry business, saying customer interest in Intel Foundry Services (IFS) and its advanced packaging technologies remains strong, giving management confidence in the unit's turnaround.

Pitzer shared updates on Intel's much-watched Intel 18A process node, revealing that Panther Lake chips built on 18A are already in mass production and are expected to appear on retail shelves by January 5, 2026.

He admitted that current yields are not yet "ideal," but emphasized that progress has been "remarkable" since Intel's new CEO, Lip-Bu Tan, took office in March. While there's still room to improve, Intel now sees steady and predictable monthly yield gains that align with industry expectations.

Looking ahead, Pitzer confirmed that the process design kit (PDK) for Intel 18A-P has reached a solid level of maturity. Intel plans to re-engage with industry partners to gauge interest in this node. Both Intel 18A-P and 18A-PT will be used for Intel’s own products as well as external projects. Thanks to early PDK readiness, these nodes are already attracting significant attention, although Intel prefers not to publicly name partners until they choose to disclose their plans themselves.

Advanced packaging is also becoming one of Intel's fastest-growing areas. With TSMC's CoWoS capacity constrained, Intel has seen rising demand for its own solutions, including EMIB, EMIB-T, and Foveros. Pitzer said Intel has made solid progress with several advanced packaging programs, and customers increasingly view these technologies as practical alternatives.

He added that much of the current engagement came from a "spillover effect" that began 12 to 18 months ago, when tight CoWoS supply drove companies to seek other options. While Intel may have underestimated how big advanced packaging could become at first, the experience helped strengthen longer-term, more strategic relationships.

As for talk about a possible breakup of the foundry unit, Pitzer was clear: optimism inside Intel is not declining, and there are no active discussions about a separation. With growing interest in both chip manufacturing and packaging services, Intel's leadership remains confident that the foundry business is on a path to recovery and growth.