The Chip Technology That Finally Gives Intel an Edge Over TSMC
By Timothy Green
Published January 21, 2026
Intel has achieved a significant milestone in its ongoing competition with Taiwan Semiconductor Manufacturing Company (TSMC) by being the first to market with an innovative chip technology known as backside power delivery. This breakthrough is embedded within Intel’s latest 18A process node, showcased in their newly launched Panther Lake CPUs, marking a crucial turning point for the silicon giant as it strives to regain leadership in semiconductor manufacturing.
What is Backside Power Delivery and Why Does It Matter?
Traditionally, modern semiconductors feature interconnects—microscopic wires that link various components—and power delivery circuits layered on the front side of the chip. While this design was sufficient for previous generations, increasing chip density and complexity have made it challenging due to interference between power and signal connections. This interference can degrade chip performance and efficiency.
Intel’s breakthrough, termed PowerVia, addresses this by relocating the power delivery wires to the backside of the chip. Separating the power circuits from the signal interconnects reduces electrical noise and congestion, enabling chips to operate faster and more efficiently.
However, manufacturing chips with backside power delivery is a complex process. Intel’s successful implementation signals the company’s regained momentum in innovative semiconductor fabrication techniques.
Performance Gains and Real-World Impact
Intel’s internal tests demonstrate that PowerVia technology facilitates approximately a 6% increase in chip frequency. This improvement means processors can run at higher speeds while consuming the same amount of power or maintain current performance levels with reduced energy consumption. Such efficiencies are particularly valuable for laptops and mobile devices, where power consumption directly impacts battery life and heat generation.
Panther Lake laptops equipped with Intel 18A chips featuring PowerVia are slated to hit the market later this month, potentially benefiting millions of consumers and businesses.
Intel’s Lead Over TSMC
While TSMC—the world’s largest and most dominant contract chip manufacturer—also plans to introduce backside power delivery capabilities, its implementation, named Super Power Rail, is expected only in its A16 process node by the end of 2026. This timing gives Intel a crucial 6-12 month head start in production and commercialization of this technology.
Moreover, Intel’s roadmap continues to demonstrate its ambition to outpace TSMC. The company plans to launch its 14A process in 2027, incorporating High-NA Extreme Ultraviolet (EUV) lithography technology. TSMC, conversely, may not adopt High-NA EUV tools until 2028, offering Intel a potential one-year advantage in next-generation chip manufacturing.
What This Means for Intel’s Foundry Business
Intel’s foundry segment, which manufactures chips for external customers, has faced significant challenges in the past years. However, the early success of PowerVia and the 18A process node highlight a rejuvenated innovation engine at Intel, potentially igniting new interest from global chip designers seeking cutting-edge manufacturing partners.
If Intel can maintain and extend its technological lead, it stands to capitalize in the fiercely competitive semiconductor industry, transforming its foundry operations into a long-term, profitable business division.
Market Snapshot:
As of January 23, 2026, Intel trades on the NASDAQ under the symbol INTC with a market capitalization of approximately $225 billion. Despite recent volatility, the development of the 18A process and PowerVia technology represent strong positive catalysts for the company’s future prospects.
About the Author
Timothy Green is a technology and consumer goods analyst for The Motley Fool, specializing in sectors such as AI, cloud computing, and semiconductor industries. He holds a bachelor’s degree in physics from the Rochester Institute of Technology and was formerly a doctoral candidate in computational physics.
The Motley Fool has positions in and recommends Intel and Taiwan Semiconductor Manufacturing.
Disclaimer: This article is for informational purposes only and does not constitute investment advice.
