Intel Gains Interest in Test Chips for Advanced 18A Process Amid Foundry Revamp Plans

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Intel’s foundry unit has recently garnered attention from several of its contract manufacturing customers who are interested in building test chips for its upcoming 18A manufacturing process. This advanced chipmaking process, which is still under development, has drawn interest at Intel’s Direct Connect conference. Intel’s foundry efforts aim to compete with industry leader TSMC, despite encountering some setbacks. Under the leadership of new CEO Lip-Bu Tan, Intel is focused on revitalizing its foundry business to meet the growing demands of the semiconductor market.

CEO Tan, who took over the position in March, has committed to making Intel’s foundry operations successful. He acknowledged that there are areas that require improvement and emphasized the company’s readiness to take customer feedback seriously. At the event, Tan reassured the industry that Intel will fully commit to its foundry business, aligning with the company’s broader goals of reshaping its operations and regaining competitive strength in the global chip market.

Intel’s upcoming 14A manufacturing process, which includes the use of high-NA EUV machines, is central to the company’s plan for next-generation chip production. This process could potentially reduce the steps required in chip production, offering significant technological advancements. However, it carries some risks, as Intel remains cautious, providing customers with the option to continue using older, more established technologies. The company is taking steps to avoid repeating past mistakes, particularly in its decision to bypass EUV technology during the 2010s while TSMC advanced in that area.

Intel’s foundry technology chief, Naga Chandrasekaran, acknowledged that the 18A process faces both challenges and progress typical of new technologies. Despite the hurdles, Intel remains confident that by the second half of 2025, it will be ready for high-volume production of 18A chips. This timeline reflects the company’s ongoing efforts to refine the technology and meet customer expectations for reliable, cutting-edge semiconductor solutions.

As part of its development strategy, Intel has already distributed an early version of the digital design kit necessary for transitioning chip blueprints into fully functional silicon. The company is preparing for the production ramp-up in its Arizona factories later this year, with initial test chips to be produced at Intel’s R&D facility in Oregon. The continued interest from major chipmakers like Broadcom and Nvidia further demonstrates the industry’s confidence in Intel’s 18A process as it moves toward broader adoption.

Source: Reuters

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