Intel’s ambition to regain its dominance in advanced chip manufacturing faces a harsh reality. According to a recent report, the Intel Foundry Services (IFS) division is showing progress, but too slowly. External revenue projections for the 2025 calendar year remain far behind its main competitor, TSMC.
Intel’s Foundry Revenue Is 1,000 Times Lower Than TSMC’s
Statistics shared by SemiAnalysis reveal the scale of the challenge facing the American company. IFS external revenue for 2025 is estimated at just $120 million. This figure is 1,000 times lower than what the Taiwanese giant TSMC achieved in the same period, showing TSMC’s absolute dominance in chip manufacturing.
Despite this vast difference, Intel remains optimistic. The company is investing heavily in its process nodes, particularly 18A and 14A, which are seen as critical turning points. High-profile companies such as Tesla, Broadcom, and Microsoft have reportedly shown interest in using Intel’s foundry services.
Intel’s Plan to Break Even by 2027
Intel’s key financial goal for IFS is to reach break-even by the end of 2027. However, its manufacturing strategy carries significant risk. Intel’s CEO has made it clear: if the company fails to secure steady and substantial external adoption of its new nodes, it may be forced to withdraw from the chip manufacturing race altogether, marking the end of a long era of technological leadership.
The projected $120 million in revenue is small compared to the enormous expenses involved in developing processes like the 18A node. The success or failure of 18A and 14A will not only determine IFS’s financial future but also decide whether Intel can truly compete with TSMC in the coming years.
