Chip designers Nvidia and Broadcom are conducting manufacturing tests with Intel’s 18A process, signaling potential confidence in Intel’s advanced production technologies despite its ongoing struggles. These tests may lead to substantial manufacturing contracts, but Intel has faced delays and has been unable to secure major chip design clients. Advanced Micro Devices is also assessing Intel’s process but hasn’t confirmed sending test chips. Intel’s contract manufacturing business is critical for its revival strategy, although setbacks have pushed back the 18A timeline to mid-2026. Overall, many chip designers remain cautious about committing to Intel amid uncertainties and past disappointments.
Chip manufacturers Nvidia and Broadcom are conducting manufacturing tests with Intel, as reported by two sources familiar with the situation to Reuters. This indicates a budding confidence in the struggling company’s advanced production capabilities.
The two tests, previously unreported, suggest that Nvidia and Broadcom are assessing whether to commit to manufacturing contracts worth hundreds of millions of dollars with Intel. A decision in favor of Intel could provide a significant revenue boost and validation for its contract manufacturing division, which has faced delays and has yet to announce a major chip designer as a client.
Meanwhile, Advanced Micro Devices is also considering the suitability of Intel’s 18A manufacturing process for its requirements, though it remains unclear if AMD has submitted test chips for evaluation. AMD has chosen not to comment on the matter.
An Intel spokesperson mentioned, “We don’t comment on specific customers but continue to see strong interest and engagement on Intel 18A across our ecosystem.”
The tests being conducted by Nvidia and Broadcom utilize Intel’s 18A process, a collection of technologies developed over several years designed for producing advanced Artificial Intelligence processors and other intricate chips. The 18A process competes with similar offerings from Taiwan’s TSMC, which currently leads the global chip market.
Nvidia has not provided any comments. Broadcom did not respond to a request for a statement.
These tests are not for complete chip designs but instead aim to assess the performance and capabilities of Intel’s 18A process. Chip designers often procure wafers to test particular components of a chip to identify and resolve issues before making substantial commitments to high-volume manufacturing of a complete design.
Testing is ongoing and can extend over several months. The start date of these tests remains unclear.
However, it is important to note that these manufacturing tests do not guarantee that Intel will secure new business. Last year, Reuters reported that a batch of tests conducted for Broadcom did not meet the expectations of its executives and engineers. At that time, Broadcom stated that it was still assessing Intel’s foundry services.
This early sign of confidence comes amid potential further delays in Intel’s capability to deliver chips to certain contract manufacturing clients relying on third-party intellectual property, as indicated by two additional sources and documents reviewed by Reuters.
The success of Intel’s foundry business was a key element of former CEO Pat Gelsinger’s strategy to revitalize the once-renowned American technology firm. However, the board dismissed Gelsinger in December.
The interim co-CEOs have put on hold Intel’s upcoming artificial intelligence chip, deferring any expectations for a viable AI chip from the company until at least 2027.
Intel’s ongoing challenges have also captured the interest of U.S. President Donald Trump’s administration, which is eager to restore American manufacturing capabilities and combat China. Intel is viewed as the sole opportunity for the U.S. to produce the most advanced semiconductors domestically.
Earlier this year, administration officials met with C.C. Wei, CEO of Taiwan’s TSMC, in New York to discuss the possibility of a majority stake in a joint venture focused on Intel’s fabrication unit, according to a source familiar with the situation. Discussions also included the potential for other chip designers to acquire equity interests in this new venture.
TSMC has declined to comment. Intel did not respond to inquiries concerning the meetings.
Intel has announced agreements with Microsoft and Amazon.com to fabricate chips using the 18A process, though specific details remain sparse. Intel has not elaborated on which chips Microsoft intends to utilize in Intel’s factories or provided specifics about Amazon’s arrangement. It is unclear how much manufacturing volume these agreements entail.
Setback
The timeline for the 18A process had already been pushed back to 2026 for potential contract manufacturing clients. Now, as reported in supplier documents and by two sources familiar with the situation, Intel has delayed its timeline by an additional six months.
This delay is attributed to the need for qualification of essential intellectual property for the 18A process, which is taking longer than expected. Without the confirmed foundational building blocks of intellectual property that smaller and mid-sized chip designers depend on, many potential customers might not be able to produce chips using the 18A process until at least mid-2026, according to the sources and documents reviewed.
The reasons behind the delay in intellectual property qualification remain unclear. The qualification process typically includes assurances from the supplier regarding functionality with a specified manufacturing process.
In response to inquiries about the delay, Intel stated, “(We will) begin ramping production in the second half of this year, delivering on the commitments we have made to our customers.” The company added that it anticipates receiving designs from customers this year.
Numerous chip designers are closely monitoring Intel’s foundry developments, hopeful that they will soon be able to leverage its manufacturing capabilities, according to industry experts.
According to Sassine Ghazi, CEO of Synopsys, Intel’s 18A process is currently operating at a level that falls between TSMC’s most advanced process and its predecessor. Synopsys provides some of the essential intellectual property necessary for Intel’s foundry.
“At present, many customers—specifically foundry clients—are waiting to see Intel’s status. Will I commit? Will I not?” Ghazi remarked.
A lag in mass production of a significant volume of chips for customers could hinder revenue from Intel’s foundry, which at present primarily manufactures Intel’s own chips. Expectations are that Intel will generate $16.47 billion (approximately Rs. 1,43,746 crore) in revenue from its foundry business in 2025, although nearly all of that revenue will come from Intel’s own products.
Revenue from the foundry segment fell by 60 percent last year, and the company has stated it will not achieve break-even status until at least 2027.
© Thomson Reuters 2025
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