Altera: The Foundry Customer Intel Half-OwnsThin moat

Intel (INTC) — moat facet

Intel's foundry revenue from outside customers rose in 2026, mostly because Altera, which Intel still half-owns, now counts as one.

Intel Foundry's external revenue improved in 2026, and most of the improvement came from inside the family. External revenue was $293 million in the second quarter and $467 million in the first half1, primarily because of Altera's transition to an external customer2.

Altera and Intel Foundry51% sold to Silver Lakeclosed 12 Sep 2025Cash proceeds$4.8bnPre-tax gain$5.6bnIntel stake kept49%Foundry external revenue, Q2 2026$293M, mostly AlteraIntel Form 10-K FY2025; Q2 2026 10-Q
Rising, mostly on a company Intel half-owns.

Altera became external by accounting. Intel sold 51% of it to Silver Lake in a deal that closed on 12 September 2025, for $4.8 billion of cash proceeds3, and kept 49% as an equity-method investment4. Its chips were already made in Intel's factories; now they count as outside revenue.

That makes Altera a useful customer and a weak proof. It shows the foundry can serve a separate company, with its own contracts and pricing. It does not show that an unrelated chip designer will choose Intel over TSMC.

Intel's 10-K is clear on the larger point: it has been unsuccessful to date in securing any significant external foundry customers5. External revenue was $307 million for all of 20256.

Intel kept a financial stake in the outcome. Its retained 49% of Altera is accounted for as an equity-method investment7, so Intel gains when Altera does well and books the manufacturing revenue as external. The arrangement is sensible; it is also the easiest possible first foundry customer.

Altera is the first line of the foundry's customer list, and the easiest one to write. The number that will matter is external revenue excluding Altera, which Intel does not disclose; a named customer with no Intel ownership would be the first real evidence.

Moat trajectory: Holding steady

External revenue rose on Altera; no unrelated customer of size yet.

The number that tests this moat
Reported
Intel Foundry external revenue, first half
$467M (H1 2026); $307M in all of 2025

Outside business for the factories; growth beyond Altera would be the first real customer evidence.

Source: Intel Form 10-Q, Q2 2026 ↗
References
  1. ReportedExternal revenue was $293 million in the second quarter and $467 million in the first half, primarily because of Altera's transition to an external customer.
    Intel Form 10-Q for the quarter ended 27 June 2026 - segments, the Ireland SCIP repurchase, escrowed shares, Intel 14A, customer deposits and debt. — Q2 2026 · publ. 24 July 2026 · source ↗
  2. ReportedExternal revenue was $293 million in the second quarter and $467 million in the first half, primarily because of Altera's transition to an external customer.
    Intel Form 10-Q for the quarter ended 27 June 2026 - segments, the Ireland SCIP repurchase, escrowed shares, Intel 14A, customer deposits and debt. — Q2 2026 · publ. 24 July 2026 · source ↗
  3. ReportedIntel sold 51% of it to Silver Lake in a deal that closed on 12 September 2025, for $4.8 billion of cash proceeds, and kept 49% as an equity-method investment.
    Intel Form 10-K for fiscal 2025 (year ended 27 December 2025) - financial statements and notes: results, capital, government and partner transactions, restructuring and tax. — FY2025 · publ. 23 January 2026 · source ↗
  4. ReportedIntel sold 51% of it to Silver Lake in a deal that closed on 12 September 2025, for $4.8 billion of cash proceeds, and kept 49% as an equity-method investment.
    Intel Form 10-K for fiscal 2025 (year ended 27 December 2025) - financial statements and notes: results, capital, government and partner transactions, restructuring and tax. — FY2025 · publ. 23 January 2026 · source ↗
  5. ReportedIntel's 10-K is clear on the larger point: it has been unsuccessful to date in securing any significant external foundry customers.
    Intel Form 10-K for fiscal 2025 (year ended 27 December 2025) - Item 1A risk factors and legal proceedings. — FY2025 · publ. 23 January 2026 · source ↗
  6. ReportedExternal revenue was $307 million for all of 2025.
    Intel Form 10-K for fiscal 2025 (year ended 27 December 2025) - Item 1 business: products, process technology, competition, manufacturing and customers. — FY2025 · publ. 23 January 2026 · source ↗
  7. ReportedIts retained 49% of Altera is accounted for as an equity-method investment, so Intel gains when Altera does well and books the manufacturing revenue as external.
    Intel Form 10-K for fiscal 2025 (year ended 27 December 2025) - Item 7 MD&A and Note 3: segment revenue, operating income and drivers. — FY2025 · publ. 23 January 2026 · source ↗
Sources
Generated September 25, 2026