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.
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