Intel struggles reportedly hit its key manufacturing process: Timeline and newer tech risk failure, likened to 'Hail Mary' effort

Time of India

3 days ago

Representative Image
Intel's key manufacturing process, 18A, is reportedly facing significant quality issues as the company tests newer technologies. This issue threatens Intel's timeline for manufacturing deals and its effort to regain a competitive edge in producing high-end chips. A report by the news agency Reuters cited two people who were briefed on the matter to claim that
Intel
has spent billions on developing the 18A process, including building and upgrading several factories. The US-based chip maker's goal was to challenge Taiwan Semiconductor Manufacturing Co. (TSMC), a key supplier that helps Intel produce some of its chips. One of the sources also compared Intel's effort to a "Hail Mary' football pass, describing the company's aggressive timeline to roll out unproven systems to reduce its contract foundry business dependency on closing the technology gap with TSMC.
How Intel may be struggling with its 18A manufacturing process
Intel undertook the 18A manufacturing process challenge to narrow its performance gap with TSMC. Still, the company's fast-paced rollout of untested systems created significant hurdles, two individuals familiar with its test data said to Reuters. One described the initiative as a
'Hail Mary'
football pass.
In April, Intel announced it had started
"risk production"
for
Panther Lake chips
using the 18A process. At the Taiwan Computex expo in May, it showcased several laptops that it said were powered by these chips.
Initial testing of Intel's 18A process reportedly fell short of customer expectations last year. However, the company has maintained that the technology remains on schedule for high-volume production of its
"Panther Lake"
laptop chips in 2025.
These chips feature next-generation transistors and an updated power delivery method. Intel has positioned this development as a key step toward attracting more external clients to its foundry business, which new CEO Lip-Bu Tan has been reassessing, according to Reuters.
Two individuals familiar with internal test data since late last year said to Reuters that only a limited portion of
Panther Lake
chips produced using the 18A process have met quality standards for customer use.
Progress in chip manufacturing is often measured by defect density, which depends on the chip's design. Compared to industry norms, Panther Lake chips showed approximately three times the acceptable number of defects for large-scale production, the two individuals said.
Production success rate also referred to as "yield" is also an essential factor in determining whether Intel can manufacture the chips cost-effectively. Yield can fluctuate as manufacturing processes are refined, and companies often measure it differently, making it a variable metric, according to two sources and two others familiar with Intel's operations, Reuters reported.
By late last year, around 5% of the Panther Lake chips produced met Intel's standards, according to the sources. That yield increased to about 10% by this summer, one source noted, adding that Intel might report a higher figure if it includes chips that do not meet all performance benchmarks.
iOS 26 Public Beta Is Here: Apple's Biggest Redesign Since iOS 7
AI Masterclass for Students. Upskill Young Ones Today!– Join Now