Intel just doubled down on its bet that it can become a contract chipmaker worth hiring. The company announced an expanded partnership with Cadence Design Systems on June 8, focused on optimizing Intel’s upcoming 14A manufacturing process using AI-driven design tools.
The deal centers on something called Design Technology Co-Optimization, or DTCO. Cadence’s software will help chip designers squeeze more performance out of Intel’s next-generation manufacturing node, making it more attractive for companies that might want to pay Intel to build their chips.
The numbers behind Intel’s foundry problem
Intel Foundry Services, the division tasked with manufacturing chips for external clients, reported a loss of $2.3 billion on $4.2 billion in revenue in Q3 2025. That’s actually progress. The previous year’s loss clocked in at $5.8 billion.
Analysts project a Q4 loss of roughly $2.5 billion for the foundry division. No external customers have committed to the 18A node, the process Intel has been ramping up alongside initial shipments of its Panther Lake client chips.
