Intel makes most money in its chip factory business from an older manufacturing process. The company calls this older system Intel 7. These factories build processors for laptop computers, desktop computers, and servers running websites. The chip company sells these parts to itself rather than to outside customers. Intel earned $4.7 billion from making chips during the first three months of 2025.
The foundry business lost $2.3 billion during this time because Intel spent heavily on newer technology called 18A. This advanced system costs lots of money before it makes chips that sell. Intel keeps making older Raptor Lake chips because people want them. Computer makers order large numbers of these 13th and 14th-generation processors. The main executive who handles money said orders came in faster than expected.
Intel plans to start making more chips with the new 18A process later this year. Their next major processor design, Panther Lake, arrives at the end of 2025. More versions will follow in early 2026. The company wants outside customers to use its factories for chip making. Right now, these outside businesses just test designs with Intel but have not started making real products.
Older technology pays bills today. New technology costs money today, but might pay bills tomorrow. Intel tries to do both things at once. Their chip packaging services, which connect different chips together into one product, also brought extra money last quarter. The company hopes its new factories help catch up with competitors who moved ahead in recent years.
The foundry business lost $2.3 billion during this time because Intel spent heavily on newer technology called 18A. This advanced system costs lots of money before it makes chips that sell. Intel keeps making older Raptor Lake chips because people want them. Computer makers order large numbers of these 13th and 14th-generation processors. The main executive who handles money said orders came in faster than expected.
Intel plans to start making more chips with the new 18A process later this year. Their next major processor design, Panther Lake, arrives at the end of 2025. More versions will follow in early 2026. The company wants outside customers to use its factories for chip making. Right now, these outside businesses just test designs with Intel but have not started making real products.
Older technology pays bills today. New technology costs money today, but might pay bills tomorrow. Intel tries to do both things at once. Their chip packaging services, which connect different chips together into one product, also brought extra money last quarter. The company hopes its new factories help catch up with competitors who moved ahead in recent years.
