INTC · 10-K · 2025A · Full report

R&D and Development Spend

INTEL CORP · 2026-01-23 · Importance 23 · Surprise 24

Intel reiterates a commitment to advancing leading-edge semiconductor process technology and manufacturing in the U.S., noting it is the only company conducting both leading-edge logic R&D and high-volume manufacturing in the U.S. Intel cited Intel 18A (now in production) and continued development of Intel 14A as key nodes, and highlighted that modern leading-edge nodes using EUV (Intel 4, Intel 3, Intel 18A, Intel 14A) require substantial capital investment. Management notes these investments require manufacturing volumes beyond Intel's internal demand to achieve economic efficiency and that, if Intel is unable to secure a significant external foundry customer for Intel 14A, it may pause or discontinue pursuit of Intel 14A and successor nodes. In that event Intel would expect, over time, to shift manufacturing to third-party foundries, particularly TSMC, for nodes beyond Intel 18A and Intel 18A-P.

Key facts

• Total R&D and MG&A expenses for 2025 were $18.4 billion, down 17% compared to 2024 and representing 34.8% of revenue for 2025 versus 41.5% for 2024.
• 2025 R&D expenses decreased by $2.8 billion, or 17%, from 2024, primarily driven by lower payroll-related expenditures from headcount reductions and $610 million of lower share-based compensation.
• Research and development expense was $13,774 million in 2025, representing 26.1% of revenue.
• R&D expenses were $13.8 billion in 2025, $16.5 billion in 2024 and $16.0 billion in 2023.
• 2025 R&D expense reductions were partially offset by higher incentive-based cash compensation of $418 million.
• In 2025 Intel's R&D investments focused on AI integration, heterogeneous computing architectures and next-generation process technologies including Intel 18A and Intel 14A.

Impact estimates