Intel's 14A Process Revived! Countdown to 2028 Mass Production Begins

According to Benzinga, Intel's (INTC-US) second-quarter earnings may reflect another massive loss in its foundry business, but one announcement stood out far more than the financial figures.

Just three months ago, Intel had warned that its next-generation 14A process might be delayed—or even abandoned—without sufficient customer demand. Now, the company has formally committed to launching mass production in 2028.

This decision eliminates one of the biggest uncertainties hanging over Intel's foundry division and kicks off a new countdown. Having already invested billions of dollars, Intel now has roughly two years to prove that customers will place enough orders to justify this investment.

A Complete Turnaround in Three Months

Earlier this year, Intel made it clear that the 14A process was not a given.

In its first-quarter filings, the company stated that future investments in the 14A process and factory expansions would depend on securing substantial external customer commitments and achieving an acceptable return on capital.

This quarter, that language has undergone a substantive change.

CEO Lip-Bu Tan said Intel "made the decision in Q2 to fully push forward with mass production in 2028," citing significantly increased customer engagement, rising demand from Intel's own product roadmap, and positive technical progress on the process node.

"We remain on track to start 14A risk production for internal products in the second half of 2027," he said.

He added that the company is seeing "growing momentum in customer collaboration" and is increasingly confident that 14A will be competitive in performance, power, density, cost, and schedule.

CFO Dave Zinsner echoed this view, stating that Intel has increased investment this quarter to prepare for 14A risk production in 2027, while reaffirming the commitment to mass production the following year.

The Countdown Has Begun

This commitment does not mean Intel's foundry business has turned profitable.

Far from it.

According to earnings presentation materials, the company's foundry business reported a $2.1 billion operating loss this quarter, although operating margin improved from -71.7% a year ago to -36.2% as revenue climbed to $5.8 billion.

The company has already entered risk production for 18A-P, and the next key milestone for the 14A process—the 0.9 process design kit (PDK)—is still on track for release in October, giving potential customers another opportunity to evaluate the technology before committing to future chip designs.

The company's latest 10-Q filing also explicitly states that the current investment logic depends on converting technological momentum into commercial success.

Intel intends to accelerate the capacity expansion plan for the 14A process, but the "scale and pace" of these investments will ultimately depend on demand from Intel's own products and design wins from major external foundry customers.

For investors, the story is no longer whether Intel will build the 14A process, but whether enough customers will be waiting for it by 2028.