Nvidia and Broadcom Test Intel’s 18A Chip Manufacturing Process

Nvidia and Broadcom are conducting manufacturing tests with Intel, two sources familiar with the matter said, signalling early confidence in Intel’s advanced chip production techniques.

The tests, which have not been previously reported, could lead to manufacturing contracts worth hundreds of millions. A commitment from Nvidia or Broadcom would provide a significant revenue boost and validation for Intel’s contract manufacturing business, which has faced delays and has yet to secure a major chip designer as a customer.

Advanced Micro Devices (AMD) is also evaluating Intel’s 18A manufacturing process but has not confirmed whether it has sent test chips for production. AMD declined to comment.

An Intel spokesperson said, "We don't comment on specific customers but continue to see strong interest and engagement on Intel 18A across our ecosystem."

Intel’s 18A Process Faces Competition

The tests by Nvidia and Broadcom involve Intel’s 18A process, a technology developed over several years to manufacture advanced artificial intelligence processors and other complex chips. The 18A process competes with Taiwan Semiconductor Manufacturing Co. (TSMC), which dominates the global chip market.

Nvidia declined to comment, while Broadcom did not respond to requests for comment.

These tests are not being conducted on complete chip designs but are instead focused on evaluating the behaviour and capabilities of Intel’s 18A process. Chip designers often purchase wafers to test specific components before committing to full-scale production. The testing process can take months, though it is unclear when these tests began.

However, testing does not guarantee that Intel will secure new business. Last year, Broadcom’s initial tests with Intel reportedly disappointed its executives and engineers. At the time, Broadcom stated it was still reviewing Intel’s foundry capabilities.

Intel Faces Delays and Leadership Changes

Intel’s contract manufacturing business, or foundry, was a key part of former CEO Pat Gelsinger’s strategy to revitalise the company. However, Gelsinger was dismissed in December, and the interim co-CEOs have since shelved Intel’s upcoming artificial intelligence chip, delaying its AI chip ambitions until at least 2027.

The U.S. government has taken an interest in Intel’s struggles, as the company is seen as critical to maintaining advanced semiconductor manufacturing within the country. Earlier this year, U.S. officials met with TSMC CEO C.C. Wei in New York to discuss a potential majority stake in a joint venture with Intel’s factory unit. The talks also explored the possibility of other chip designers investing in the venture.

TSMC declined to comment, and Intel did not respond to questions about the meetings.

Intel has announced deals with Microsoft and Amazon to produce chips using the 18A process, but details remain scarce. The company has not disclosed which Microsoft chip will be manufactured at its facilities or which Amazon product will use Intel’s technology. The scale of these manufacturing agreements is also unclear.

Further Delays in Intel’s 18A Process

Intel’s 18A process was already delayed to 2026 for contract manufacturing customers. Now, according to supplier documents and sources, the timeline has been pushed back another six months.

The delay stems from the need to qualify crucial intellectual property for the 18A process, which is taking longer than expected. Without these fundamental building blocks, many small and mid-sized chip designers will be unable to produce chips using Intel’s technology until at least mid-2026.

It is unclear why the intellectual property qualification has been delayed. Typically, this process involves suppliers guaranteeing that their technology will function correctly with a given manufacturing process.

Asked 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 expects to receive chip designs from customers this year.

Industry Watches Intel’s Progress

Many chip designers are closely monitoring Intel’s foundry progress, hoping to use its manufacturing capabilities soon.

Intel’s 18A process currently performs between TSMC’s most advanced process and its predecessor, according to Synopsys CEO Sassine Ghazi. Synopsys supplies some of the intellectual property needed for Intel’s foundry.

"Right now, there are a lot of customers waiting—I'm talking foundry customers—to see the state of Intel. Will I commit? Will I not?" Ghazi said.

A delay in mass-producing customer chips could impact Intel’s foundry revenue, which primarily comes from producing its own chips. Intel is expected to generate USD 16.47 billion in foundry revenue in 2025, though most of that will come from internal production.

Revenue for Intel’s foundry segment declined 60% last year, and the company has stated it does not expect to break even until at least 2027.

Nvidia and Broadcom are testing Intel’s 18A chip manufacturing process, potentially leading to major contracts.
Intel’s 18A process competes with TSMC’s advanced chip technology.
Intel’s foundry business has faced delays, leadership changes, and government interest.

Source: REUTERS