Why America Must Invest in Intel Foundry - by Austin Lyons
An American-owned, leading-edge semiconductor foundry is a strategic imperative for national security, particularly given emerging AI-driven warfare capabilities. See Futurence for more context.
Intel’s Foundry remains America’s strongest prospect for semiconductor independence, but its long-term viability is under growing risk.
The following report outlines the rationale for government intervention to ensure Intel Foundry's success and safeguard U.S. interests.
Intel Foundry Services (IFS) – A semiconductor manufacturing division that serves both Intel Product Group and external clients
Intel Foundry Services (IFS) is broadening its focus from supporting Intel products to serving external clients. Initially offering lower-value advanced packaging services, IFS is now advancing to high-value chip fabrication for major players like AWS and Microsoft 1 2 3 . These chips will be manufactured using Intel's 18A process node, the pinnacle of its ambitious “Five Nodes in Four Years” (5N4Y) strategy to reclaim the leading edge in semiconductor manufacturing 4 . Achieving this vision requires a multi-year investment plan exceeding $100 billion in leading-edge manufacturing, advanced packaging, and R&D facilities, spanning U.S. locations such as Arizona, New Mexico, Ohio, and Oregon 5 .
Although Intel Foundry is being established as an independent subsidiary inside Intel, it is nowhere close to profitability; the quarter that ended October 31 saw an operating loss of $5.8B.
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