Intel is doubling down on its foundry ambitions, but the road ahead is getting pricier. After its upcoming 18A lithography node—set to debut with Panther Lake processors—the company is already deep into development of its 14A process, which will be even more expensive to manufacture.
At Citi’s 2025 Global TMT Conference, Intel CFO David Zinsner confirmed that wafer costs will rise under 14A, largely due to the adoption of new, more advanced equipment:
“The 14A is more expensive than the 18A. It’s not significantly more expensive in terms of capital investment. But it is a higher wafer cost, for sure, partly because we expect to use High-NA EUV tools in 14A, which was not the case in 18A.”
Each step forward in semiconductor lithography brings higher costs, and Intel must ensure there’s enough demand to justify the investment.
Earlier this year, CEO Pat Gelsinger warned that if 14A fails to attract external customers, Intel may be forced to reconsider its plans.
Zinsner later clarified those remarks:
“I think what he’s saying is that if we can’t get external customers for 14A, it will be difficult to justify the node. Yes, Intel Products will be a major customer, but we need overall demand to a level that generates a reasonable return for shareholders.”
Powered by ASML’s High-NA EUV
Intel plans to use ASML’s Twinscan EXE:5200B High-NA EUV machines, the most advanced lithography tools in existence. Each unit costs around $380 million, and a single fab capable of housing them can run more than $20 billion. ASML remains the sole supplier of this technology worldwide.
Given the enormous financial and technological hurdles, Intel is receiving support from both the U.S. government and foreign partners. The funding is intended to help ensure that the company can push forward with 14A development and maintain competitiveness in the global chip race.
