Intel's foundry business secured Fortinet as a customer for next-generation security chip production, the companies announced Tuesday, marking the first publicly named client win under CEO Lip-Bu Tan, who took over in March 2025. Fortinet will manufacture its SP6 chip using Intel's Intel 4 process, as Intel continues efforts to justify large capital expenditures for factories in the U.S. and overseas by securing significant customers for its foundry services. The partnership comes as cybersecurity chip demand rises in an AI-dominated landscape, with Fortinet's stock more than doubling this year while Intel shares have rallied over 300% in the past year following a U.S. government stake in August.
Intel Foundry Pursues Major Customer Partnerships
Intel stated in an April filing that it continues seeking a "significant" customer for its most advanced manufacturing technology. The company's leading processes for computer processors are known as 14A and 18A, while Intel 4 represents older, less advanced technology established for simpler chips called ASICs for networking.
Tan told CNBC's Jim Cramer in May that "multiple customers" were working with Intel's foundry, though he maintains a personal policy against disclosing their names. Intel's biggest confirmed foundry customer remains itself, with the U.S. government also using the foundry for defense chip manufacturing.
Microsoft announced a partnership with Intel to manufacture an unspecified processor in 2024 under previous CEO Pat Gelsinger. Amazon said later that year it would use Intel to build a custom artificial intelligence chip, though both announcements involved relatively low-volume chips.
In April, Intel said it would help design an ASIC with Google called an infrastructure processing unit. Intel is also helping Elon Musk's Tesla and SpaceX build a chip factory called Terafab. President Donald Trump said in June that Apple would use Intel to manufacture chips in the U.S., though neither company has officially confirmed a deal.
The U.S. government took a 10% stake in Intel in August. Intel is scheduled to report second-quarter results on Thursday after the bell.
Fortinet Stock Doubles Amid Security Chip Investment
Fortinet operates in a market experiencing heightened demand for advanced security in an AI-dominated world. The company's stock price has more than doubled this year. Fortinet said on its last earnings call in May that it would continue investing in its ASIC technology.
FAQ
What did Intel announce on Tuesday regarding its foundry business?
Intel announced Tuesday that Fortinet will use Intel's foundry to produce its next-generation security chip, the SP6, manufactured on the Intel 4 process.
When did Lip-Bu Tan become Intel's CEO?
Lip-Bu Tan took over as Intel CEO in March 2025, making the Fortinet deal his first publicly named foundry customer win.
How has Intel's stock performed in the past year?
Intel's stock price has rallied more than 300% in the past year following the U.S. government taking a 10% stake in the company in August.
