# Intel Shifts Oregon Wafer Capacity to Intel 3 for Data-Center Products By John Kim Canonical URL: https://www.tokenpost.com/news/business/47060 Published: 2026-11-02T23:56:18.000Z Updated: 2026-11-02T23:56:18.000Z Section: Business > Intel Foundry recorded $411 million in external revenue for the quarter ended Sept. 26, while its Data Center and AI business grew 78% year over year. Intel is shifting some planned wafer capacity in Oregon from its 18A process to Intel 3 to expand production of data-center products as server demand grows. On the Oct. 29 earnings call, Intel Chief Financial Officer David Zinsner described a change to the Oregon production plan. Some of the 18A wafers had generally been intended for Panther Lake products; the revised plan moves part of that capacity to Intel 3 for more data-center wafers. Intel did not disclose the scale of the change or when it would be complete. The [third-quarter foundry results]() show that most Intel Foundry revenue came from transactions within Intel. The segment generated $6.697 billion for the quarter ended Sept. 26, including $6.3 billion from internal transactions and $411 million from external customers. It posted an operating loss of $1.853 billion. Intel attributed the increase in external revenue primarily to a nonrecurring customer program. Intel’s Data Center and AI business generated $7.318 billion in third-quarter revenue, up 78% from a year earlier. Server volume rose 10%, while average selling prices increased 54%; Intel tied most of the price increase to a higher mix of premium products. Intel said industry supply constraints had limited its ability to meet demand and could continue into next year. Client Computing and Physical AI revenue fell 5% to $8.097 billion. Intel forecast that the segment’s revenue would decline more than 20% sequentially in the fourth quarter. The company forecast total fourth-quarter revenue of $15 billion to $16 billion, following third-quarter revenue of $16.5 billion, up 21% from a year earlier. Separately, CEO Lip-Bu Tan said Intel was discussing 18A-P with a couple of strategic customers and making progress with multiple potential customers for 14A. He did not name the companies or announce production orders. The customer discussions concern 18A-P and 14A, distinct process nodes from the 18A capacity involved in the Oregon shift; Intel did not say the reallocation affects those discussions. Tan said, “I am increasingly confident that Intel 18A-P will be an attractive node for external foundry customers.” ## Links in this article - [third-quarter foundry results](https://www.tokenpost.com/news/business/45834)