In a pivotal moment for the semiconductor industry, chip design giants Nvidia (NASDAQ: NVDA) and Broadcom (NASDAQ: AVGO) are conducting manufacturing tests using Intel’s (NASDAQ: INTC) advanced 18A process. According to sources familiar with the matter, these early tests signify a potential shift in confidence toward Intel’s foundry business, which has long struggled with delays and stiff competition from Taiwan Semiconductor Manufacturing Co. (TSMC).
Intel’s 18A Process: A Step Toward Advanced AI Chips
The 18A process, developed over years, incorporates cutting-edge chip manufacturing techniques designed to support artificial intelligence (AI) processors and other high-performance semiconductors. If Nvidia and Broadcom commit to full-scale production using Intel’s technology, it could signal a major endorsement for Intel’s contract manufacturing ambitions.
The tests being conducted are not full-fledged chip designs but are aimed at evaluating the behavior and capabilities of Intel’s 18A process. It is common for chip designers to purchase wafers for testing before committing to large-scale production. Testing phases like these can take several months before a final decision is made.
AMD Also Evaluating Intel’s Foundry Capabilities
Alongside Nvidia and Broadcom, Advanced Micro Devices (NASDAQ: AMD) is also reportedly assessing Intel’s 18A technology. However, it remains unclear if AMD has initiated any test chip production within Intel’s foundry. The company has not provided a comment on its engagement with Intel’s manufacturing capabilities.
Challenges and Delays: A Lingering Concern
Despite the early signs of confidence, Intel’s foundry business faces hurdles. The company has already pushed back its 18A process timeline to 2026 for contract manufacturing customers, citing delays in qualifying essential intellectual property (IP). This delay could impact smaller and mid-sized chip designers that depend on pre-qualified building blocks to manufacture chips using Intel’s process.
Intel’s ability to close the performance gap with TSMC remains a critical factor. Industry experts suggest that Intel’s 18A currently sits between TSMC’s most advanced node and its predecessor. Synopsys CEO Sassine Ghazi recently confirmed that Intel’s process is improving but still needs further development.
Geopolitical Implications and Industry Interest
Intel’s progress is closely watched by both U.S. policymakers and the broader tech industry. With the U.S. government eager to restore domestic semiconductor manufacturing and reduce reliance on Asian foundries, Intel’s success could play a significant role in America’s technological self-sufficiency. The Biden administration has reportedly explored potential collaborations between Intel and TSMC, including a joint venture in which TSMC could take a stake in Intel’s factory unit.
Meanwhile, Intel has already secured manufacturing agreements with Microsoft (NASDAQ: MSFT) and Amazon (NASDAQ: AMZN) for its 18A process, though specific details remain undisclosed.
The Road Ahead for Intel’s Foundry Ambitions
With Nvidia, Broadcom, and AMD evaluating Intel’s manufacturing capabilities, the coming months will be crucial in determining whether the company can re-establish itself as a leading chip manufacturer. The foundry’s success will depend on Intel’s ability to meet performance benchmarks, resolve supply chain issues, and deliver a competitive alternative to TSMC. If these early tests yield positive results, Intel could secure lucrative contracts, marking a significant turnaround in its bid to regain dominance in the semiconductor industry.
