Intel Foundry Seen Profitable in 2H27 as 18A Yields Near 80%

A note on Intel outlined a larger foundry buildout through 2028, with Intel 3 capacity seen rising 80% mainly in Ireland and 18A capacity doubling in Arizona versus end-2026 plans. The note said 18A yields have improved to about 80%, with EMIB at 90% to 95% in recent weeks, and forecast Intel Foundry Services would turn profitable in the second half of 2027.

The note tied the capacity increase to robust server CPU demand, an unnamed major US fabless customer in the pipeline, and a major smartphone maker expected to start on 18A-P for tablets and PCs while committing to 14A capacity. It also said Clearwater Forest would start in the third quarter of 2026 and reach full volume in the first quarter of 2027, accounting for about one-third of total 18A wafers, with the TeraFab project targeted for late 2028.