Intel's foundry business has encountered obstacles, leading the company to reportedly entrust TSMC with the fabrication of its sub-3nm process technology. This move comes as part of a broader strategy to revitalize the company's fortunes, which includes a global workforce reduction of 15%. Citing a semiconductor industry insider, the high costs associated with advanced process technologies have contributed to a trend where industry leaders dominate the market, leaving Intel struggling to keep pace.

The insider notes that while Intel is committed to its foundry business, customers like Broadcom have expressed concerns about Intel's ability to meet mass production requirements for their CPU technology, starting from the Lunar Lake series. Intel's latest financial report indicates a widening loss in its foundry business, with a reported loss of $2.8 billion (approximately 19.894 billion RMB) and an operating profit margin of -65.5%. The expansion of Intel 3 and Intel 4 process technologies at their Ireland facility has placed significant pressure on profitability.

In response, Intel is actively pursuing a transformation strategy focused on "cost reduction and efficiency enhancement." The company aims to save $10 billion (approximately 71.051 billion RMB) by 2025, which includes plans to sell off certain business segments, and has announced a pause in dividend distributions.

The industry observer emphasizes that Intel is at a critical juncture, with the necessity to cut all non-essential expenditures and focus resources on its core chip business to remain competitive in the market.