Chip designers Nvidia Corp and Broadcom Inc are running manufacturing tests with Intel Corp, two sources familiar with the matter said, demonstrating early confidence in the struggling company’s advanced production techniques.
The two tests, which have not been reported previously, indicate the companies are moving closer to determining whether they would commit hundreds of millions of dollars’ worth of manufacturing contracts to Intel. The decision to do so could generate a revenue windfall and endorsement for Intel’s contract manufacturing business that has been beset by delays and has not yet announced a prominent chip designer customer.
Advanced Micro Devices Inc is also evaluating whether Intel’s 18A manufacturing process is suitable for its needs, but it was unclear if it had sent test chips through the factory.
Photo: Reuters
“We don’t comment on specific customers, but continue to see strong interest and engagement on Intel 18A across our ecosystem,” an Intel spokesperson said.
The tests by Nvidia and Broadcom are using Intel’s 18A process, a series of technologies and techniques developed over years that is capable of making advanced artificial intelligence processors and other complex chips. The process competes with similar technology from Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), which dominates the global chip market.
Testing is under way and can last months. It is unclear when the tests started and manufacturing tests are no assurance that Intel would eventually win new business.
The 18A process was already delayed to next year for potential contract manufacturing customers.
Now, Intel has pushed back its timeline another six months, according to supplier documents reviewed by Reuters and two sources familiar with the matter.
Asked about the delay, Intel said that it would “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 its factories to receive designs from customers this year.
Intel’s 18A process currently performs at a level between TSMC’s most advanced process and its predecessor, Synopsys Inc CEO Sassine Ghazi said in an interview.
Synopsys supplies some of the crucial intellectual property needed for Intel’s foundry.
Intel is expected to generate US$16.47 billion in revenue from the foundry business this year, although almost all of that revenue is from Intel itself. Revenue for the foundry segment declined 60 percent last year, and the company has said it would not break even until at least 2027.
Nvidia Corp chief executive officer Jensen Huang (黃仁勳) on Monday introduced the company’s latest supercomputer platform, featuring six new chips made by Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), saying that it is now “in full production.” “If Vera Rubin is going to be in time for this year, it must be in production by now, and so, today I can tell you that Vera Rubin is in full production,” Huang said during his keynote speech at CES in Las Vegas. The rollout of six concurrent chips for Vera Rubin — the company’s next-generation artificial intelligence (AI) computing platform — marks a strategic
REVENUE PERFORMANCE: Cloud and network products, and electronic components saw strong increases, while smart consumer electronics and computing products fell Hon Hai Precision Industry Co (鴻海精密) yesterday posted 26.51 percent quarterly growth in revenue for last quarter to NT$2.6 trillion (US$82.44 billion), the strongest on record for the period and above expectations, but the company forecast a slight revenue dip this quarter due to seasonal factors. On an annual basis, revenue last quarter grew 22.07 percent, the company said. Analysts on average estimated about NT$2.4 trillion increase. Hon Hai, which assembles servers for Nvidia Corp and iPhones for Apple Inc, is expanding its capacity in the US, adding artificial intelligence (AI) server production in Wisconsin and Texas, where it operates established campuses. This
Garment maker Makalot Industrial Co (聚陽) yesterday reported lower-than-expected fourth-quarter revenue of NT$7.93 billion (US$251.44 million), down 9.48 percent from NT$8.76 billion a year earlier. On a quarterly basis, revenue fell 10.83 percent from NT$8.89 billion, company data showed. The figure was also lower than market expectations of NT$8.05 billion, according to data compiled by Yuanta Securities Investment and Consulting Co (元大投顧), which had projected NT$8.22 billion. Makalot’s revenue this quarter would likely increase by a mid-teens percentage as the industry is entering its high season, Yuanta said. Overall, Makalot’s revenue last year totaled NT$34.43 billion, down 3.08 percent from its record NT$35.52
PRECEDENTED TIMES: In news that surely does not shock, AI and tech exports drove a banner for exports last year as Taiwan’s economic growth experienced a flood tide Taiwan’s exports delivered a blockbuster finish to last year with last month’s shipments rising at the second-highest pace on record as demand for artificial intelligence (AI) hardware and advanced computing remained strong, the Ministry of Finance said yesterday. Exports surged 43.4 percent from a year earlier to US$62.48 billion last month, extending growth to 26 consecutive months. Imports climbed 14.9 percent to US$43.04 billion, the second-highest monthly level historically, resulting in a trade surplus of US$19.43 billion — more than double that of the year before. Department of Statistics Director-General Beatrice Tsai (蔡美娜) described the performance as “surprisingly outstanding,” forecasting export growth
RSS