Intel, a leading semiconductor manufacturer, has encountered challenges in the testing phase of its advanced 18A manufacturing process, according to a new report from Reuters. The setback could potentially delay the company’s ambitious plans to achieve mass production of its most advanced chips by next year.
The report reveals that Intel’s 18A process, designed to bring the company back to the forefront of the chip industry, has faced significant hurdles during testing conducted with chipmaker Broadcom. Broadcom reportedly sent silicon wafers through Intel’s 18A manufacturing process, specifically the photolithography stage, and received the wafers back last month. However, sources familiar with the matter indicate that Broadcom’s engineering teams were not satisfied with the results, raising concerns about the readiness of Intel’s 18A process for mass production.
The concerns stem from the complexity of chip manufacturing, which involves hundreds of intricate steps. Success is ultimately measured by the number of functional chips produced from each silicon wafer. According to the report, Broadcom engineers expressed apprehension about transitioning to mass production due to the presence of a significant number of defects on each wafer or potentially subpar chip quality.
Intel’s 18A process, under development for several years, is a crucial element of the company’s IDM 2.0 strategy, spearheaded by CEO Pat Gelsinger since his return in 2021. The technology enables the production of chips with transistors as small as 18 angstroms (or 1.8 nanometers) and incorporates Intel’s PowerVia technology, which allows for more efficient power delivery to the chip. Intel has also secured a contract with Microsoft to manufacture 18A chips worth over $15 billion. Any delays in the 18A process could significantly impact Intel, which has been struggling in recent years and reported losses of $1.6 billion in the last quarter.
In response to the Reuters report, an Intel spokesperson stated that the 18A process is operational and on track for mass production next year. The spokesperson also highlighted the industry’s strong interest in 18A but declined to comment on specific customer discussions. A Broadcom spokesperson told Reuters that the company is evaluating Intel Foundry’s products and offerings, and the evaluation process is ongoing.
Adding to the concerns surrounding Intel’s manufacturing capabilities, the company has surprisingly announced that it will abandon its 20A process for Arrow Lake, its 15th generation of PC processors. Instead, Intel will outsource the production of these chips to competitor TSMC. Intel will retain only the packaging of the chips in its own facilities.
Ben Sell, Intel’s vice president of technology development, attributed the decision to the company’s focus on 18A technology, appearing to downplay the Reuters report. The move also allows Intel to avoid the expenses associated with fully deploying the 20A process, ultimately transitioning to 18A. This decision, coupled with Intel’s recent announcement of 15,000 job cuts by the end of the year, suggests the company is actively seeking ways to reduce costs in light of its recent financial performance.
