Major chip designers are exploring Intel's advanced manufacturing capabilities, though timeline challenges remain.
According to Reuters sources, Nvidia and Broadcom have begun testing Intel's cutting-edge 18A manufacturing process, putting it in direct competition with Taiwan-based TSMC's advanced technology. While these tests don't involve complete chip designs yet, they represent a crucial step toward potential manufacturing contracts worth hundreds of millions of dollars.
The path forward isn't entirely smooth. Sources say Intel has pushed back its timeline for supporting certain contract customers to mid-2026, primarily due to delays in qualifying essential intellectual property rights for the 18A process.
Intel projects its foundry revenue will reach $16.47 billion in 2025, though most of this will come from manufacturing its own chips. The segment's performance has been rocky, with sales dropping 60 percent last year. The company doesn't expect to reach profitability in this division until at least 2027.
High-profile partnerships emerge amid uncertainty
While Intel has secured agreements with Microsoft and Amazon for 18A chip production, specific details about products and volumes remain unclear. AMD is also evaluating the 18A process, though it's unknown if testing has begun.
The new manufacturing technology marks Intel's entry into the Angstrom era of chip production. According to Synopsys CEO Sassine Ghazi, Intel's foundry performance currently sits between TSMC's most advanced process and its previous generation.
The competitive landscape might shift toward cooperation. Sources say Trump administration officials met with TSMC CEO C.C. Wei earlier this year to discuss a possible majority stake in a joint venture with Intel's fab division, reflecting government interest in Intel amid tensions with China.
