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Title: Intel's next-gen manufacturing process is reportedly still struggling

Date: Tue, 05 Aug 2025 18:41:46 +0000
Link: https://www.engadget.com/big-tech/intels-next...

Intel is reportedly still struggling with a chipmaking process crucial to its
future. Reuters reports that the company's 18A process is still producing low
yields and high defect rates. Intel has invested billions of dollars in the
manufacturing process, on which it's pinned its hopes of gaining ground on
TSMC.

This isn't the first concerning news about 18A. Last year, a report stated
that Broadcom was unhappy with the results of a test run for a potential
order. However, Intel insisted at the time that 18A was on track to make its
upcoming Panther Lake chips at volume later this year. "Our performance and
yield trajectory gives us confidence this will be a successful launch that
further strengthens Intel's position in the notebook market," Intel said last
month.

Intel has typically aimed for a yield of at least 50 percent of usable chips
before scaling up production. The company is said to make the bulk of its
profit after reaching 70 to 80 percent. Last year, 18A's usable Panther Lake
chips had reportedly only reached a five percent threshold. Intel had aimed
for 10 percent by this summer. Tuesday's report doesn't state 18A's current
yield, only describing it as a small percentage.

In a statement sent to Engadget, an Intel spokesperson said it is pleased
with 18A's current state. "We feel very good about our trajectory on Intel
18A, and it will be the foundation of multiple generations of client and
server products in the coming years," the spokesperson wrote. "Panther Lake
is going to be a great product for Intel and our partners," the company
continued, adding that its launch is still on track for later this year.

In a July interview with Reuters, Intel's Chief Financial Officer David
Zinsner suggested that 18A's yields were better than reports claimed. He
added that yields tend to "start off low and improve over time."

The company's 18A process is a risky bet, combining manufacturing changes
with a next-gen transistor design. Intel embraced the challenge with an
aggressive timeline that one of Reuters' sources called a hail mary. 18A
going well would also help attract business for its upcoming 14A process.
Last month, Intel warned investors that it may have to leave chip
manufacturing altogether if it doesn't land 14A contracts.

The company needs all the help it can get. It recently confirmed that it
would cut around 20 percent of its workforce by the end of this year. That
follows 20,000 job cuts from June 2024 to July 2025. Earlier this year, it
took on a new CEO to try to right the ship.

This article originally appeared on Engadget at https://www.engadget.com/big-
tech/intels-next-gen-manufacturing-process-is-reportedly-still-struggling-
184146350.html?src=rss

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