For months, Intel has promised investors it would increase manufacturing using a process it calls 18A. It spent billions of dollars developing 18A, including the construction or upgrades of several factories, with the goal of challenging Taiwans chip-making heavyweight, TSMC.
Intel wants to round out its business designing chips that it largely makes in-house and TSMC helps it produce, with a contract manufacturing business that can compete with this key supplier. But whether Intel revives advanced chip production in the US and gets its contract foundry on solid footing depends on closing the technology gap with TSMC.
Early tests disappointed customers last year, but Intel has said its 18A is on track to make its Panther Lake laptop semiconductors at high volume starting in 2025, which include next-generation transistors and a more efficient way to deliver power to the chip. The chip maker has hoped that producing such an advanced in-house chip would grow external interest in its foundry, at a time when new CEO Lip-Bu Tan has explored a major shift to course-correct that fledgling business.
Yet only a small percentage of the Panther Lake chips printed via 18A have been good enough to make available to customers, said the two people, who were briefed on the companys test data since late last year. The sources spoke on condition of anonymity because Intel did not authorise them to disclose such information.
Yields generally start off low and improve over time, Intels chief financial officer David Zinsner said in a 24 July interview.