On Friday, Intel Foundry announced two new customers tapping into its advanced semiconductor manufacturing process for the defense sector. Trusted Semiconductor Solutions and Reliable MicroSystems are now on board, using Intel’s 18A process under the federal Rapid Assured Microelectronics Prototypes – Commercial (RAMP-C) project. This Defense Department initiative, launched in 2021, aims to strengthen the U.S. commercial foundry network, focusing on custom integrated circuits for defense applications.
Both companies are set to employ Intel’s 18A process and advanced packaging. Trusted Semiconductor Solutions specializes in radiation-hardened microelectronics tailored for military, defense, and space use. Reliable MicroSystems develops electronics designed to simulate and counteract radiation effects.
Intel’s progress includes successful demonstrations of working chips, such as the AI PC processor Panther Lake and the Xeon server processor Clearwater Forest. The true test of the 18A process will be when Intel begins large-scale chip manufacturing this year. Jack Gold, principal analyst at J.Gold Associates, pointed out that producing functional chips is a good sign for the process. The real measure of success will come when production ramps up.
Gold sees the new contracts as a vote of confidence in Intel’s capabilities. The RAMP-C project also includes tech giants like Nvidia, IBM, and Microsoft, as well as defense firms Boeing and Northrop Grumman, alongside chipmaker Qualcomm Technologies and semiconductor manufacturer GlobalFoundries.
Last April, the Defense Department sanctioned Intel Foundry’s 18A process for crafting defense-related semiconductor prototypes. The U.S. has taken strides to revive its chip manufacturing industry since the CHIPS and Science Act passed in 2022. This legislation allocates $52.7 billion over the next decade for semiconductor production, research, and workforce development. A joint report from the Semiconductor Industry Association, Boston Consulting Group, and Oxford Economics anticipates that this investment could triple U.S. chip manufacturing capacity by 2032.
Intel received the largest chunk of funding from the CHIPS Act, totaling $7.86 billion. Other beneficiaries included Taiwan Semiconductor Manufacturing Co. (TSMC), Micron Technology, and Samsung Electronics.
Historically, the U.S. was a semiconductor powerhouse, controlling 37% of global fabrication in 1990, but that figure plummeted to 12% by 2020, according to the SIA. Intel, once the world’s largest chipmaker, played a role in this decline. As of the third quarter of 2024, TSMC claimed a staggering 64% of the global foundry market, as reported by Counterpoint Research.
The future of Intel’s foundry business is uncertain. Analysts are skeptical whether the funding from the CHIPS Act will be sufficient for Intel to compete effectively with TSMC, raising questions about the company’s ability to secure additional investment.
In recent discussions, interim co-CEO David Zinsner hinted at the potential for selling the foundry, indicating it’s a consideration for the future. Zinsner stepped into the co-CEO role alongside veteran Michelle Johnston Holthaus after Intel’s board compelled CEO Pat Gelsinger to retire on December 1. Holthaus is tasked with overseeing all Intel products.
Antone Gonsalves, based in San Francisco, covers essential trends in enterprise tech as an editor at large for Informa TechTarget, drawing on 25 years of experience in tech journalism.