Intel Lands Fortinet as First Named Foundry Customer

What happened

Intel and Fortinet revealed a partnership to develop and manufacture Fortinet's next-generation Security Processor 6 (SP6) using Intel's Intel 4 process node. The collaboration combines Fortinet's proprietary security processor design expertise with Intel's manufacturing, packaging, and design capabilities. Intel 4 is a mature process node originally developed for networking ASICs and simpler chips, positioned behind Intel's cutting-edge 14A and 18A processes. The companies stated the partnership will also improve the resilience and diversity of Fortinet's global supply chain. Both companies indicated they plan to explore further collaboration opportunities to advance Fortinet's long-term ASIC roadmap and future cybersecurity innovation.

Why it matters

This announcement represents a significant milestone for Intel's foundry business, which has been working to attract external customers as part of its broader strategic transformation. Intel CEO Lip-Bu Tan previously acknowledged in May that the company had multiple customers engaged with its foundry but declined to name them. An April regulatory filing showed Intel had not yet secured a significant customer for its most advanced manufacturing processes. Landing Fortinet as the first publicly disclosed foundry customer provides validation of Intel's manufacturing capabilities and could help attract additional external clients. For Fortinet, the partnership supports its ASIC development strategy, which executives reaffirmed as a priority during the company's May earnings call. Fortinet shares have surged more than 100% year-to-date, reflecting strong investor confidence in the company's strategic direction.

Bigger picture

Intel's foundry expansion is a cornerstone of its strategy to compete with industry leaders like TSMC and Samsung in contract chip manufacturing. The company has been investing heavily in advanced manufacturing technologies, including ASML's High NA EUV lithography, which is now being used to pattern select layers of Intel's Panther Lake processors on the Intel 18A process node. Securing named customers, even for mature process nodes like Intel 4, helps build credibility and demonstrates Intel's ability to serve diverse semiconductor manufacturing needs. For Fortinet, developing custom ASICs is part of a broader industry trend where cybersecurity and networking companies design proprietary chips to optimize performance and differentiate their products. The collaboration also addresses supply chain resilience concerns that have become increasingly important for technology companies following recent global semiconductor shortages.

What to watch

Investors should monitor whether Intel announces additional foundry customers, particularly for its most advanced 18A and 14A process nodes, which are critical to the company's long-term competitive positioning. Intel's second-quarter earnings report, due shortly after this announcement, may provide further updates on foundry progress and customer pipeline. For Fortinet, watch for updates on the SP6 development timeline and any announcements about expanded collaboration with Intel or other semiconductor partners. Fortinet's next earnings call will likely provide more details on how this partnership fits into the company's broader ASIC roadmap and product strategy.