Intel Foundry secures Fortinet deal for Intel 4 chips

Intel Foundry just landed Fortinet as its first named outside customer under new CEO Lip-Bu Tan, agreeing to make the cybersecurity giant’s next-generation Security Processor 6.

The deal lets Intel move into a new niche—high-security chips—while helping Fortinet cut its reliance on TSMC, which controls 72% of the global foundry market. Under the agreement, Intel will handle advanced packaging and manufacturing on its Intel 4 process, while Fortinet keeps control of the chip’s design. It’s a rare public win for Intel’s foundry push after years of missed opportunities with customers like Nvidia in 2009.

The timing matters because Intel’s foundry revenue hit $5.8 billion in Q2 2026, up 31% and beating its own 25% target. That growth shows the unit is gaining traction, even as analysts debate whether it’s enough to justify Intel’s high valuation. The forward P/E of 66 suggests the stock is already priced for big things, which could make investors cautious despite the Fortinet deal. Still, this is Intel’s first high-profile cybersecurity design win, a space where custom chips are increasingly critical.

The bigger question is whether other cybersecurity firms will follow Fortinet’s lead. If Intel can build a reputation for secure, high-performance ASICs, it could carve out a meaningful slice of the foundry market beyond traditional chips. That won’t move the needle on Intel’s stock today, but it could make the foundry unit a long-term reason to own the company—if execution follows through.