Intel's foundry lands first named customer under CEO Lip-Bu Tan, as Fortinet signs on for security chips
Fortinet is the first announced corporate customer for Intel's foundry under CEO Lip-Bu Tan, who took over the chipmaker in March 2025.
Intel's foundry business has secured its first named customer under the leadership of CEO Lip-Bu Tan, with Fortinet agreeing to produce security chips. This development is significant as it marks a milestone in Intel's efforts to revive its foundry services, which have been a key area of focus for the company under Tan's leadership. The foundry business model involves manufacturing chips for other companies, providing a crucial source of revenue for Intel.
The partnership with Fortinet, a leading provider of cybersecurity solutions, highlights the growing demand for customized chip solutions in the security space. As the threat landscape continues to evolve, companies like Fortinet require specialized chips to power their security products. Intel's foundry services can provide the necessary capacity and expertise to support Fortinet's growth plans. This deal also underscores Intel's ambition to become a major player in the foundry market, competing with established players like Taiwan Semiconductor Manufacturing Company (TSMC) and Samsung.
Looking ahead, investors should watch for further announcements on Intel's foundry business, particularly in terms of customer wins and revenue growth. The company's ability to attract more customers and execute on its foundry strategy will be crucial in determining its long-term success. Additionally, the bond market will be monitoring Intel's credit profile and debt management as it invests in its foundry business and navigates the competitive semiconductor landscape.
Originally reported by cnbc.com. BondNews adds analysis for finance & markets readers.