Intel Foundry Wins First Named Customer Under New CEO Lip-Bu Tan
Fortinet has signed on to manufacture security chips with Intel's foundry, marking a milestone for CEO Lip-Bu Tan's turnaround strategy.
Intel's foundry business has secured its first publicly named corporate customer since Lip-Bu Tan assumed the chief executive role in March 2025, with cybersecurity firm Fortinet agreeing to produce security chips through the unit. The announcement carries symbolic weight beyond a single contract: it signals that Intel's manufacturing-for-hire ambitions may be gaining traction under new leadership at a moment when the broader foundry strategy has faced intense scrutiny.
Tan inherited a foundry operation that had struggled to attract the kind of marquee external clients needed to justify the billions Intel has poured into advanced fabrication capacity. His appointment was widely read as a deliberate pivot toward credibility with the chip-design community, given his deep background in semiconductor engineering and his prior tenure leading Cadence Design Systems. Fortinet's decision to commit to Intel for security-specific silicon offers Tan an early, concrete data point to build a commercial narrative around.
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The pairing makes strategic sense on both sides. Fortinet, a major player in network security hardware, has clear incentives to pursue custom silicon that can deliver better performance-per-watt for its appliances rather than relying solely on off-the-shelf components. For Intel, a security-focused customer provides a foothold in a segment where chip customization is increasingly valued and where the competitive pressure from Taiwan's TSMC is fierce but not insurmountable.
Whether one named customer constitutes a turning point or merely a positive headline will depend on what follows. Analysts tracking Intel's foundry ambitions have consistently argued that winning a handful of credible, design-intensive clients — rather than volume commodity work — is the more meaningful proof of competitiveness. Fortinet qualifies as exactly that kind of signal. The months ahead will reveal whether this deal is the leading edge of a broader customer roster or an outlier in an otherwise difficult rebuild.
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