Nvidia and Broadcom are conducting manufacturing tests using Intel’s advanced 18A process technology, according to sources familiar with the matter.
This development suggests a potential shift in the semiconductor industry, as both companies currently rely on Taiwan Semiconductor Manufacturing Company (TSMC) for their chip production needs.
Intel’s 18A process represents a significant advancement in semiconductor fabrication, aiming to position Intel as a competitive player in the foundry business. Despite previous setbacks and delays, Intel has been actively seeking to attract major clients to its manufacturing services. The involvement of Nvidia and Broadcom in testing indicates growing interest and confidence in Intel’s capabilities.
It’s important to note that these tests are preliminary, and successful trials do not guarantee that Nvidia and Broadcom will enter into manufacturing agreements with Intel. The evaluation process can extend over several months, and past experiences, such as Broadcom’s unsuccessful trials last year, highlight the challenges involved.
Additionally, Advanced Micro Devices (AMD) is reportedly assessing the suitability of Intel’s 18A process for its own requirements, though it remains unclear whether AMD has initiated test chip production.
This development has positively impacted Intel’s stock performance, with shares rising approximately 6% to $25.18 following the reports. The company’s stock has experienced an 18% increase year-to-date, although it remains 43% lower compared to the same period last year.
In summary, Nvidia and Broadcom’s testing of Intel’s 18A manufacturing process marks a notable step in the semiconductor industry’s evolving landscape. While the outcomes of these tests are yet to be determined, they underscore Intel’s efforts to establish itself as a viable alternative in the chip manufacturing sector.
