Nvidia and Broadcom Test Intel’s 18A Chip Process Amid Delays in Foundry Business

Nvidia and Broadcom are reportedly conducting tests on Intel’s 18A chip manufacturing process, a critical step as both companies evaluate whether to invest in Intel’s struggling foundry business. This testing signals a potential move towards large-scale contracts, which could provide a significant revenue boost for Intel. However, these tests are still in early stages, with no assurances yet that they will result in full-scale production agreements. Intel’s foundry unit has faced significant delays, and it remains to be seen whether it can meet the expectations of potential clients.

Intel’s 18A process, developed over several years, is designed to produce advanced artificial intelligence processors and other complex chips. It competes directly with similar offerings from Taiwan’s TSMC, which dominates the global chip market. While both Nvidia and Broadcom are testing specific components of the 18A process, it is unclear when the tests started or how successful they have been thus far. Intel’s foundry business has been under pressure due to delays and challenges in meeting customer requirements, especially in the realm of third-party intellectual property.

Despite Intel’s difficulties, some industry insiders are hopeful about its progress. The company’s contract manufacturing business, which was once central to its growth strategy, has struggled, especially following delays to its AI chip plans. A recent change in leadership, which saw the firing of former CEO Pat Gelsinger, has further complicated Intel’s path forward. Moreover, the U.S. government has shown interest in supporting Intel, particularly in restoring domestic semiconductor manufacturing capabilities amid global supply chain concerns.

Further complicating matters, Intel’s 18A process faces additional setbacks, with the timeline for qualification now pushed to mid-2026. These delays are primarily due to complications in qualifying essential intellectual property, which is crucial for the process to succeed. As a result, the timeline for mass production has slipped, pushing Intel’s revenue expectations for its foundry business into the second half of the decade. For now, many chip designers remain on the fence, waiting to see whether Intel can deliver on its promises.

SOURCE: REUTERS