Intel anticipates surpassing TSMC in producing the fastest chips in 2021.

(Reuters) – Intel said on Wednesday it would miss a 2025 deadline to overtake its biggest rival in advanced chipmaking, giving new details of plans to maintain that lead against Taiwan’s TSMC through 2026 and beyond.

Intel was scheduled to make the announcement in San Jose, Calif., at the first technology conference for Intel Foundry, the contract manufacturing operation it has set up to compete with Taiwan Semiconductor Manufacturing Co.

Intel says it plans to take back TSMC’s production of the world’s fastest chips later this year with Intel 18A manufacturing technology and extend it to 2026 with a new technology called Intel 14A.

The news about the 14A technology is the first time the Silicon Valley company has given details about its plans beyond 2025. That’s the deadline Pat Gelsinger had put back on the chipmaking crown when he became Intel’s CEO three years ago.

For decades, Intel made chips only for itself and used its leadership in manufacturing to create a cycle where it made chips with industry-leading performance and charged a premium for them. These margins, in turn, helped finance the development of production. But when Intel lost its manufacturing leadership, the competitiveness of its chips became less competitive and its margins fell, reducing the source of funding to revive production.

Now Intel is relying on potentially billions of dollars in U.S. government subsidies and business from outside customers to help it get back on track.

It hopes some customers will be drawn to its long history of high-end factories on multiple continents, especially those concerned about TSMC’s practice of keeping its most advanced factories clustered in Taiwan.

“It’s a sales pitch that resonates right now. People want it,” Stu Pann, the executive who oversees Intel Foundry, said of the company’s geographic diversity.

Intel says it has four “major” customers signed up for its 18A manufacturing technology, but has yet to name them.

Intel also has a special technology that analysts say is useful in speeding up power-hungry AI chips. Artificial intelligence chip market leader Nvidia has said it is evaluating Intel’s manufacturing technology, but the companies have not announced an agreement.

Intel’s push to attract outside customers “is key to the turnaround story,” said Ben Bajarin, managing director of consulting firm Creative Strategies.

“Unfortunately, that’s an unanswered question because it’s a two- to three-year journey before we have any idea that this is going to work.”