Intel trails TSMC in foundry revenue
What happened
- Intel’s first-quarter 2026 results showed Intel Foundry generated $5.4 billion in revenue, while TSMC reported $35.9 billion in first-quarter revenue on April 16. - Intel said only $174 million of Intel Foundry’s first-quarter revenue came from external customers, underscoring how much of its business still depends internally. - Intel is scheduled to report second-quarter 2026 results after the market closes on July 23, according to its investor relations calendar.
Why it matters
Intel remains far smaller than TSMC as a merchant foundry, even after years of investment and policy support aimed at building more advanced chip manufacturing in the United States. Intel said on April 23 that Intel Foundry generated $5.4 billion in first-quarter 2026 revenue, including $174 million from external customers. TSMC said on April 16 that its first-quarter 2026 revenue was $35.9 billion. The figures, drawn from the companies’ latest quarterly disclosures, show the scale gap that still separates Intel’s foundry effort from the market leader. ### How big is the revenue gap right now? TSMC reported $35.9 billion in first-quarter 2026 revenue, according to its quarterly results and earnings release. Intel reported $5.4 billion for Intel Foundry in the same period, according to its earnings materials. Intel also said external foundry revenue was $174 million in the quarter. The comparison is not perfectly like-for-like because Intel Foundry includes internal manufacturing activity, while TSMC’s business is built around serving outside customers. (download.intel.com) But Intel’s own disclosure that only $174 million came from external customers shows how early it still is in building a broad third-party foundry business. ### Why does the external-customer number matter so much? (investor.tsmc.com) Intel’s $174 million external foundry figure matters because merchant foundries are judged in part by how much business they win from companies that are free to choose another manufacturer. Intel said Intel Foundry revenue rose sequentially on increased EUV wafer mix driven by Intel 3 and growth in 18A, but the external number remained a small share of the segment total. (download.intel.com) Forbes said on May 26 that Intel still trails TSMC in the foundry race despite improving sentiment around Intel’s 18A process. That analysis described 18A as Intel’s most significant manufacturing advance in years, while still presenting the company as behind TSMC in commercial scale. ### What does Intel say about the foundry business? Intel told investors in its first-quarter earnings materials that Intel Foundry revenue increased 20% sequentially. (download.intel.com) The company linked that growth to higher EUV wafer mix from Intel 3 and significant 18A growth. Intel has also signaled it is willing to work with TSMC where it sees mutual benefit. Investing.com reported that Chief Executive Lip-Bu Tan said Intel views TSMC as a valued partner and that the two companies had met to explore potential areas of collaboration. (forbes.com) ### What does TSMC’s scale buy it with customers? TSMC said first-quarter 2026 revenue rose 35.1% year over year to NT$1.134 trillion, or $35.9 billion, and posted gross margin of 66.2% and operating margin of 58.1%. (download.intel.com) Those numbers illustrate the scale and profitability of the business Intel is trying to challenge. For customers, the gap means Intel is still proving it can become a large external manufacturing platform rather than only a domestic alternative backed by industrial policy. (investing.com) Analysts at Forbes and Investing.com framed the comparison around Intel’s smaller outside-customer base and TSMC’s much larger foundry revenue lead. ### What should customers watch next? (investor.tsmc.com) Intel said on April 23 that it expects second-quarter 2026 revenue of $13.8 billion to $14.8 billion, and its investor relations page lists second-quarter results for July 23, 2026. TSMC’s investor relations page already lists second-quarter 2026 guidance of $39.0 billion to $40.2 billion in revenue. Those updates will give investors and customers the next official read on whether Intel is expanding its external foundry business fast enough to narrow the gap. (forbes.com) (intc.com)
Key numbers
- Intel’s first-quarter 2026 results showed Intel Foundry generated $5.4 billion in revenue, while TSMC reported $35.9 billion in first-quarter revenue on April 16.
- Intel said only $174 million of Intel Foundry’s first-quarter revenue came from external customers, underscoring how much of its business still depends internally.
- Intel is scheduled to report second-quarter 2026 results after the market closes on July 23, according to its investor relations calendar.
- Intel said on April 23 that Intel Foundry generated $5.4 billion in first-quarter 2026 revenue, including $174 million from external customers.
What happens next
- (download.intel.com) Forbes said on May 26 that Intel still trails TSMC in the foundry race despite improving sentiment around Intel’s 18A process.
- (investor.tsmc.com) Intel said on April 23 that it expects second-quarter 2026 revenue of $13.8 billion to $14.8 billion, and its investor relations page lists second-quarter results for July 23, 2026.
- Those updates will give investors and customers the next official read on whether Intel is expanding its external foundry business fast enough to narrow the gap.
Quick answers
What happened in Intel trails TSMC in foundry revenue?
Intel’s first-quarter 2026 results showed Intel Foundry generated $5.4 billion in revenue, while TSMC reported $35.9 billion in first-quarter revenue on April 16. Intel said only $174 million of Intel Foundry’s first-quarter revenue came from external customers, underscoring how much of its business still depends internally. Intel is scheduled to report second-quarter 2026 results after the market closes on July 23, according to its investor relations calendar.
Why does Intel trails TSMC in foundry revenue matter?
Intel remains far smaller than TSMC as a merchant foundry, even after years of investment and policy support aimed at building more advanced chip manufacturing in the United States. Intel said on April 23 that Intel Foundry generated $5.4 billion in first-quarter 2026 revenue, including $174 million from external customers. TSMC said on April 16 that its first-quarter 2026 revenue was $35.9 billion. The figures, drawn from the companies’ latest quarterly disclosures, show the scale gap that still separates Intel’s foundry effort from the market leader. How big is the revenue gap right now? TSMC reported $35.9 billion in first-quarter 2026 revenue, according to its quarterly results and earnings release. Intel reported $5.4 billion for Intel Foundry in the same period, according to its earnings materials. Intel also said external foundry revenue was $174 million in the quarter. The comparison is not perfectly like-for-like because Intel Foundry includes internal manufacturing activity, while TSMC’s business is built around serving outside customers. (download.intel.com) But Intel’s own disclosure that only $174 million came from external customers shows how early it still is in building a broad third-party foundry business. Why does the external-customer number matter so much? (investor.tsmc.com) Intel’s $174 million external foundry figure matters because merchant foundries are judged in part by how much business they win from companies that are free to choose another manufacturer. Intel said Intel Foundry revenue rose sequentially on increased EUV wafer mix driven by Intel 3 and growth in 18A, but the external number remained a small share of the segment total. (download.intel.com) Forbes said on May 26 that Intel still trails TSMC in the foundry race despite improving sentiment around Intel’s 18A process. That analysis described 18A as Intel’s most significant manufacturing advance in years, while still presenting the company as behind TSMC in commercial scale. What does Intel say about the foundry business? Intel told investors in its first-quarter earnings materials that Intel Foundry revenue increased 20% sequentially. (download.intel.com) The company linked that growth to higher EUV wafer mix from Intel 3 and significant 18A growth. Intel has also signaled it is willing to work with TSMC where it sees mutual benefit. Investing.com reported that Chief Executive Lip-Bu Tan said Intel views TSMC as a valued partner and that the two companies had met to explore potential areas of collaboration. (forbes.com) What does TSMC’s scale buy it with customers? TSMC said first-quarter 2026 revenue rose 35.1% year over year to NT$1.134 trillion, or $35.9 billion, and posted gross margin of 66.2% and operating margin of 58.1%. (download.intel.com) Those numbers illustrate the scale and profitability of the business Intel is trying to challenge. For customers, the gap means Intel is still proving it can become a large external manufacturing platform rather than only a domestic alternative backed by industrial policy. (investing.com) Analysts at Forbes and Investing.com framed the comparison around Intel’s smaller outside-customer base and TSMC’s much larger foundry revenue lead. What should customers watch next? (investor.tsmc.com) Intel said on April 23 that it expects second-quarter 2026 revenue of $13.8 billion to $14.8 billion, and its investor relations page lists second-quarter results for July 23, 2026. TSMC’s investor relations page already lists second-quarter 2026 guidance of $39.0 billion to $40.2 billion in revenue. Those updates will give investors and customers the next official read on whether Intel is expanding its external foundry business fast enough to narrow the gap. (forbes.com) (intc.com)
