"Exclusive News" and Broadcom's disappointing test results for the 18A process, Intel's foundry business suffers setbacks
Intel's 18A process failed in testing with Broadcom, leading to setbacks in its foundry business and impacting its efforts to turn losses into profits. Broadcom believes that the process is not yet feasible for large-scale production. Nevertheless, Intel claims that the 18A process is starting well and still plans to achieve mass production next year. Broadcom is evaluating Intel's foundry products and has not yet reached a conclusion. This foundry business is a key part of Intel CEO Gelsinger's strategy to turn losses into profits
Reuters, September 4 - Three sources familiar with the matter told Reuters that Intel's (INTC.O) foundry business suffered a major setback, as its most advanced 18A process failed to pass tests with chipmaker Broadcom, dealing a blow to Intel's efforts to return to profitability.
Sources said that the testing with Broadcom involved getting silicon wafers through the 18A process. Last month, Broadcom received these wafers from Intel, and after engineers and executives reviewed the results, the company concluded that the process was not feasible for mass production.
Reuters was unable to determine the current relationship between Broadcom and Intel, nor could it confirm whether Broadcom has decided to abandon the potential foundry manufacturing deal.
An Intel spokesperson stated in a release, "Intel 18A is up and running well, with good yields, and we remain on track to start high-volume production next year." The statement added, "The entire industry is very interested in Intel 18A, but as a matter of policy, we do not comment on discussions with specific customers."
A Broadcom spokesperson stated that the company is "evaluating Intel Foundry's products and services, but has not yet reached an evaluation conclusion."
Intel's foundry business was launched in 2021 and is a key part of CEO Kinsburg's strategy to return to profitability
