Updated
Updated · CNBC · Jul 21
Fortinet Picks Intel Foundry for SP6 Security Chip on Intel 4
Updated
Updated · CNBC · Jul 21

Fortinet Picks Intel Foundry for SP6 Security Chip on Intel 4

2 articles · Updated · CNBC · Jul 21

Summary

  • Fortinet became Intel Foundry's first publicly named customer, with its next-generation SP6 security chip set to be made on Intel 4.
  • Intel disclosed in April it was still seeking a "significant" customer for its most advanced 14A and 18A nodes, making the Fortinet deal a validation win for CEO Lip-Bu Tan even though it uses an older process.
  • Intel 4 is a less advanced node geared toward simpler ASICs for networking, while bigger prior announcements from Microsoft and Amazon involved relatively low-volume chips and Apple has not confirmed Trump's claimed U.S. manufacturing deal.
  • The customer win comes two days before Intel reports second-quarter results, with investors watching whether foundry demand can justify heavy factory spending after the U.S. government took a 10% stake last August.

Insights

Why is Fortinet building its next-gen security chip on Intel’s older, less advanced manufacturing process?
Bleeding billions, can Intel's foundry win the tech race against TSMC with deals on older nodes?