Intel Increases Capex Amid Rising Demand for Foundry Services
Intel has announced that its capital expenditures (capex) will exceed $20 billion in 2026, with even higher spending expected in 2027. This increase comes as the chip industry faces strong demand driven by AI applications and tight capacity constraints. The company is investing heavily to expand production capabilities, particularly through advanced packaging technologies. Intel's foundry business has gained attention following a partnership with Fortinet to co-develop the SP6 security processor using Intel 4 technology. This collaboration highlights progress in external customer adoption for Intel Foundry Services (IFS). Additionally, at the VLSI Symposium, IFS announced that its 18A-P process is now in risk production and offers improved performance metrics. Intel's Q2 financial results showed strong revenue growth of $16.13 billion with a significant increase in gross margin to 41.8%. The company’s stock has surged over the past year, supported by its high valuation multiples compared to sector averages.
Topics: capex execution risk foundry business semiconductors