Intel CFO: 18A Process Yield Acceptable by 2027

Summary

Intel’s CFO stated that the 18A process yield will reach industry-acceptable levels by 2027.Zhitong

Impact Analysis

So basically, Intel is signaling that their 18A process, which was initially expected to be a game-changer, won’t hit industry-acceptable yield levels until 2027. This is a significant delay, considering the competitive landscape with TSMC and Samsung pushing forward aggressively in advanced nodes. The interesting part isn’t just the delay itself, but what it implies about Intel’s current manufacturing capabilities and strategic positioning. While Intel has been touting the 18A process as a breakthrough, this timeline suggests they might be struggling with execution risks and technological hurdles. The market might be underestimating the impact of this delay on Intel’s ability to compete in the high-performance computing space, especially as competitors like TSMC are already advancing their 2nm processes. This could affect Intel’s ability to secure key contracts and maintain market share in the coming years. I’d read this as a potential headwind for Intel’s stock, especially if the market hasn’t fully priced in these execution risks.Zhitong+ 2