IBM Reportedly Chooses Intel 18A Over Samsung for Next-Generation Enterprise Chips

IBM has selected Intel Foundry's 18A process node for the production of its next-generation enterprise and mainframe processors, choosing Intel over Samsung foundry in a decision that carries significant symbolic weight for the semiconductor industry. The Intel 18A node features RibbonFET gate-all-around transistors and PowerVia backside power delivery, offering competitive performance metrics against TSMC's N2 technology. The deal is estimated to be worth $1.5-2 billion over three years, covering IBM's Z-series mainframe processors and next-generation Power architecture server chips used in enterprise AI and financial services workloads.

For Intel Foundry, landing IBM as a customer validates the turnaround strategy that has defined the company's recent transformation under CEO Lip-Bu Tan. IBM brings not only revenue but also credibility — the company invented the semiconductor manufacturing techniques that underpin much of modern chip fabrication, and its endorsement of 18A sends a powerful signal to other potential foundry customers. Intel Foundry chief Kevin O'Buckley stated that IBM's rigorous qualification process, which took over 14 months of testing, provided Intel with invaluable feedback that improved 18A yield and reliability for all customers.

The win also highlights Samsung's ongoing struggles to secure marquee foundry clients, as the Korean giant faces yield challenges on its own 3nm GAA process node while investing heavily in its Taylor, Texas fab expansion. Samsung had reportedly offered IBM aggressive pricing 15-20% below Intel's quotes, but IBM ultimately prioritized the combination of Intel's U.S.-based manufacturing (important for government and defense contracts that represent 30% of IBM's server revenue) and the technical superiority of PowerVia backside power delivery, which is particularly advantageous for the high-frequency, high-power-density workloads characteristic of mainframe processors. The decision underscores a broader industry trend: foundry selection increasingly depends on technical differentiation and geographic security rather than price alone.