Intel’s next-gen chip manufacturing process reportedly hits snag after failing crucial tests

Intel's 18A chip manufacturing process fails tests with Broadcom, raising concerns about production readiness.

: Intel's ambitious 18A chip manufacturing process has reportedly failed important tests, according to an evaluation by Broadcom. Intel had high hopes for this new process, intended to produce chips for major partners including Microsoft. Despite assurances from Intel that they are on track for high volume production, concerns about the readiness of the manufacturing method persist. The company's recent financial struggles and additional cost-cutting measures add to the pressure.

Intel's efforts to regain its former standing in the chipmaking industry have encountered a significant obstacle. Its next-generation manufacturing process, known as 18A, reportedly failed crucial tests conducted by semiconductor developer Broadcom. These tests were part of an evaluation for a potential order using Intel's new process on Broadcom’s silicon wafers.

Broadcom’s unsatisfactory results suggest that Intel's 18A manufacturing technique may not be ready for high-volume production despite the company's assertions to the contrary. Intel remains optimistic, indicating their plans to start high-volume manufacturing next year and highlighting industry interest in 18A. However, Intel's recent financial issues, including $1.6 billion in second-quarter losses and layoffs affecting over 15,000 employees, add to the challenges.

Company CEO Pat Gelsinger is expected to propose further cost-cutting efforts which could include delaying new facilities in Germany and Ohio and potentially selling their Altera business. Intel's ongoing stability problems with its 13th and 14th Gen CPUs, along with these recent setbacks, underscore the difficulties the company faces in regaining its market leadership.