Intel’s latest chip manufacturing technology is struggling to win over customers, CFO David Zinsner revealed this week. At a tech conference in Boston, Zinsner said external clients have shown “limited interest” in the company’s upcoming 18A and 14A production processes, with some abandoning plans after testing prototypes. “The volume we’re seeing isn’t substantial,” he admitted.

The chipmaker, aiming to compete with TSMC in the foundry market, has faced setbacks in scaling its advanced manufacturing lines. While Intel announced partnerships with unnamed clients for test chips last month, Zinsner noted that “not all of those tests translate to orders.” Earlier reports from Reuters linked NVIDIA and Broadcom to trial production runs.

Intel’s foundry division reported $4.7 billion in revenue for Q1 2025—a 7% yearly increase—but most sales came from making chips for Intel’s own products. External customers contributed only a sliver, complicating efforts to reach profitability. Zinsner warned the unit might not break even until 2027. requiring $1 billion to $5 billion annually from outside clients.

Under CEO Chen Liwu, Intel has stuck to a dual strategy: producing its own chips while courting external foundry business. Recent moves include flattening management layers and selling non-core assets like its stake in Altera. “There’s no radical shift planned,” Zinsner said, emphasizing continuity in Chen’s approach.

For now, all eyes are on whether Intel can turn prototype tests into lasting partnerships—and finally close the gap with TSMC.