Intel begins production of anticipated 18A-P chips, as AI continues to drive CPU demand

June 16, 2026

Intel (INTC) on Tuesday said that its anticipated Intel 18A-P process node has entered initial production. A process node serves as a blueprint for both Intel chips and processors the company plans to build for foundry customers.

Intel currently offers its 18A process technology, which it uses to manufacture its latest Core Series 3 processors for consumer laptops, as well as its Xeon 6+ for data centers.

The 18A-P node is an upgraded, performance-focused version of 18A, designed for improved efficiency and output. After the initial manufacturing phase, 18A-P will go into high-volume manufacturing.

For Intel, the progress on 18A-P is yet another milestone in its ongoing turnaround effort, which began under prior CEO Pat Gelsinger, who was ousted in 2024 and replaced by current CEO Lip-Bu Tan in 2025.

Intel CEO Lip-Bu Tan delivers a speech during the Computex 2026 exhibition in Taipei, Taiwan, Tuesday, June 2, 2026. (AP Photo/Chiang Ying-ying) · AP Photo/Chiang Ying-ying

The chip giant is also working to build a customer base to turn its foundry business into a competitor to TSMC.

Earlier this month, The Information reported that Google (GOOG, GOOGL) and Nvidia (NVDA) are turning to Intel to produce future chips for them. Google has already put in orders for Intel to build chips for it, while Nvidia continues to test to see if Intel’s processes are a fit for it.

Intel’s foundry business brought in $5.4 billion in revenue Q1, but reported an operating loss of $2.4 billion.

Despite that, the company’s stock price is up 224% year to date and a staggering 476% over the last 12 months.

Much of that is thanks to the massive demand for CPUs (central processing units) driven by the global AI build-out. While GPUs (graphics processing units) were and continue to be among the most sought-after chips for AI development and deployment, CPUs have become increasingly important in powering AI agents.

Autonomous and semi-autonomous digital helpers, AI agents are meant to perform tasks on a user’s behalf. Every major AI company has made agents the focus of their product strategies, including Anthropic and OpenAI.

Wall Street is projecting that increased CPU demand will boost Intel’s Data Center and AI segment, with Bloomberg analyst consensus estimates pointing to a 38% revenue jump to $5.45 billion in the second quarter, up from $3.93 billion in Q2 last year.