Intel Begins 18A-P Risk Production, Bringing Apple Foundry Deal Closer Into View

Intel has entered an early production phase for its most-advanced chip node, 18A-P, a move the company says signals its long-term commitment to competing as a contract chip manufacturer.

Intel disclosed the development at the VLSI Symposium in Honolulu, Hawaii, on Tuesday. The node is now in what the industry calls "risk production," an early stage in which data indicates the chip will meet customer requirements once it clears final qualification.

"This is a journey, and while we have more work ahead, we appreciate the opportunity to share the progress we are making," Intel foundry head Naga Chandrasekaran said in a statement. Chandrasekaran described the milestone as "a signal to Intel Foundry customers and partners that we are fully committed to leading edge process innovation over the long term."

According to the company, 18A-P delivers 9% higher performance or 18% less power consumption compared to 18A, which Intel has been manufacturing at volume at its Arizona chip plant since December. The new node is also at least 20% more heat resistant and is fully compatible with existing 18A infrastructure.

Intel brought 18A to PC chips in January, but the company has yet to land a major outside customer — a gap that analysts say 18A-P may be better positioned to fill. Chip analyst Ben Bajarin told CNBC that Apple is likely to wait for 18A-P before committing, underscoring how the newer node has become a focal point for potential partnerships.

Intel CEO Lip-Bu Tan told CNBC in May that he expects commitments from multiple foundry customers in the second half of 2026. That month, shares climbed nearly 14% on reports that Intel had reached a preliminary deal to manufacture chips for Apple.

Yield rate remains the critical variable. "Yield rate is the number one criteria here," said Neil Shah of Counterpoint Research. "If they can commit to more than 90% yield rate in the first month, I think they can attract a few more customers."

One structural obstacle persists: Intel's manufacturing processes are built primarily around x86 instruction sets, while custom chips from Apple, Google, and Amazon run on Arm architecture. "Building Arm chips is something that they have not done," Shah said, noting that Taiwan Semiconductor Manufacturing — the dominant contract chip manufacturer — "has mastered that."

TSMC is simultaneously expanding a $165 billion chipmaking campus located roughly 50 miles from Intel's own Arizona facility, reinforcing the competitive pressure Intel faces on its home turf.

Analysts point to Intel's advanced packaging technology as a more near-term opportunity. Intel's embedded multi-die interconnect bridge, known as EMIB, competes with TSMC's CoWoS packaging. "There is a lot of packaging bottlenecks at TSMC," Shah said. "That is a big opportunity right now, very low hanging opportunity for Intel."

Intel shares have risen more than 200% this year, following an 84% gain in 2025. The rally has been driven in part by a 10% equity stake taken by the U.S. government in August and a $5 billion investment from Nvidia in September.

With risk production now underway and foundry customer commitments expected before year's end, the second half of 2026 will test whether Intel's manufacturing ambitions translate into the commercial relationships the company — and Wall Street — have been anticipating.

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