Latest news with #DavidZinsner
Time of India
5 days ago
- Business
- Time of India
Intel struggles with key manufacturing process for next PC chip, sources say
The production process that Intel hoped would pave the way to winning manufacturing deals and restore its edge in churning out high-end, high-margin chips is facing a big hurdle on quality as it puts newer technologies to the test, two people briefed on the matter told Reuters. For months, Intel has promised investors it would increase manufacturing using a process it calls 18A. It spent billions of dollars developing 18A, including the construction or upgrades of several factories, with the goal of challenging Taiwan's chipmaking heavyweight, TSMC . Intel wants to round out its business designing chips that it largely makes in-house and TSMC helps it produce, with a contract manufacturing business that can compete with this key supplier. But whether Intel revives advanced chip production in the U.S. and gets its contract foundry on solid footing depends on closing the technology gap with TSMC. Early tests disappointed customers last year, but Intel has said its 18A is on track to make its " Panther Lake " laptop semiconductors at high volume starting in 2025, which include next-generation transistors and a more efficient way to deliver power to the chip. The chipmaker has hoped that producing such an advanced in-house chip would grow external interest in its foundry, at a time when new CEO Lip-Bu Tan has explored a major shift to course-correct that fledgling business, Reuters previously reported. Yet only a small percentage of the Panther Lake chips printed via 18A have been good enough to make available to customers, said the two people, who were briefed on the company's test data since late last year. The sources spoke on condition of anonymity because Intel did not authorize them to disclose such information. This percentage figure, known as yield, means Intel may struggle to make its high-end laptop chip profitably in the near future. Yield may inch up or down as a foundry optimizes its manufacturing process. Companies also calculate yield in a variety of ways, which can make this critical data a moving goal post, the two people and two additional sources with knowledge of Intel's manufacturing operation said. Yields generally "start off low and improve over time," Intel's Chief Financial Officer David Zinsner told Reuters in a July 24 interview. For Panther Lake, "it's early in the ramp," he said. In a statement on July 30, Intel added: "Our performance and yield trajectory gives us confidence this will be a successful launch that further strengthens Intel's position in the notebook market." Intel in the past has aimed for a yield north of 50% before ramping production because starting any earlier risked damaging its profit margin, three of the sources said. Intel typically does not make the lion's share of its profit until yields reach roughly 70% to 80%, key for a chip as small as Panther Lake where many defects would make it a tough sell, the three people said. Profit also flows from market expansions and building up factory output, Intel said. An immense yield increase would be a tall task by Panther Lake's fourth-quarter launch, the two people with knowledge of Intel's manufacturing operation said. But without such a jump, Intel may have to sell some chips at a lower profit margin or at a loss, the two sources briefed on test data said. Panther Lake is "fully on track," Intel said in its July 30 comment. Intel did not specify the yield threshold at which its chips become profitable. The company has warned it could exit leading-edge manufacturing entirely if it does not land external business for 14A, which is 18A's next-generation successor. 'Hail Mary' Intel's 18A process involved big manufacturing changes and introduced newer technologies all at once, such as a next-generation transistor design and a feature that would improve the delivery of energy to a chip. This created manufacturing risks due to the complexity of fabricating chips, three of the sources said. Intel took on this challenge to close the performance gap with TSMC, but its aggressive timeline for a rollout of unproven systems set it up for failure, said the two people briefed on the company's test data. One likened the effort to a "Hail Mary" football pass. In April, Intel said it had begun a crucial step toward printing Panther Lake chips via 18A known as "risk production." The company also showed off several laptops it said used Panther Lake chips at the Taiwan Computex expo in May. But problems have persisted. One way chip manufacturers gauge progress is to measure the number of defects per area of a chip, which can vary based on a semiconductor's design. Relative to industry standards, the Panther Lake chips had about three times too many defects for Intel to start high-volume production, the two sources briefed on test data said. As of late last year, only around 5% of the Panther Lake chips that Intel printed were up to its specifications, these sources said. This yield figure rose to around 10% by this summer, said one of the sources, who cautioned that Intel could claim a higher number if it counted chips that did not hit every performance target. Reuters could not establish the precise yield at present. In the interview with Reuters, Zinsner disputed these figures and said "yields are better than that." He did not give a number for July or late 2024, and Intel declined to provide this data. "Our expectation is every month they'll get better and better, such that we're at a yield level that is good for production-level Panther Lake at the end of the year," he said, adding: "I wouldn't say that margins are accretive even at those yield levels, so we still have to make improvement." Tan has tapped supply-chain contacts more than usual for Intel and has given them data to help improve chip yields, Zinsner said. For now, Intel remains partly dependent on TSMC to make its in-house designed chips. An Intel executive said in June that Nova Lake, a chip it is planning after Panther Lake, will be made partly on TSMC, too.
The Hindu
5 days ago
- Business
- The Hindu
Intel struggles with key manufacturing process for next PC chip, sources say
The production process that Intel hoped would pave the way to winning manufacturing deals and restore its edge in churning out high-end, high-margin chips is facing a big hurdle on quality as it puts newer technologies to the test, two people briefed on the matter told Reuters. For months, Intel has promised investors it would increase manufacturing using a process it calls 18A. It spent billions of dollars developing 18A, including the construction or upgrades of several factories, with the goal of challenging Taiwan's chipmaking heavyweight, TSMC. Intel wants to round out its business designing chips that it largely makes in-house and TSMC helps it produce, with a contract manufacturing business that can compete with this key supplier. But whether Intel revives advanced chip production in the U.S. and gets its contract foundry on solid footing depends on closing the technology gap with TSMC. Early tests disappointed customers last year, but Intel has said its 18A is on track to make its "Panther Lake" laptop semiconductors at high volume starting in 2025, which include next-generation transistors and a more efficient way to deliver power to the chip. The chipmaker has hoped that producing such an advanced in-house chip would grow external interest in its foundry, at a time when new CEO Lip-Bu Tan has explored a major shift to course-correct that fledgling business, Reuters previously reported. Yet only a small percentage of the Panther Lake chips printed via 18A have been good enough to make available to customers, said the two people, who were briefed on the company's test data since late last year. The sources spoke on condition of anonymity because Intel did not authorise them to disclose such information. This percentage figure, known as yield, means Intel may struggle to make its high-end laptop chip profitably in the near future. Yield may inch up or down as a foundry optimises its manufacturing process. Companies also calculate yield in a variety of ways, which can make this critical data a moving goal post, the two people and two additional sources with knowledge of Intel's manufacturing operation said. Yields generally "start off low and improve over time," Intel's Chief Financial Officer David Zinsner told Reuters in a July 24 interview. For Panther Lake, "it's early in the ramp," he said. In a statement on July 30, Intel added: "Our performance and yield trajectory gives us confidence this will be a successful launch that further strengthens Intel's position in the notebook market." Intel in the past has aimed for a yield north of 50% before ramping production because starting any earlier risked damaging its profit margin, three of the sources said. Intel typically does not make the lion's share of its profit until yields reach roughly 70% to 80%, key for a chip as small as Panther Lake where many defects would make it a tough sell, the three people said. Profit also flows from market expansions and building up factory output, Intel said. An immense yield increase would be a tall task by Panther Lake's fourth-quarter launch, the two people with knowledge of Intel's manufacturing operation said. But without such a jump, Intel may have to sell some chips at a lower profit margin or at a loss, the two sources briefed on test data said. Panther Lake is "fully on track," Intel said in its July 30 comment. Intel did not specify the yield threshold at which its chips become profitable. The company has warned it could exit leading-edge manufacturing entirely if it does not land external business for 14A, which is 18A's next-generation successor. 'HAIL MARY' Intel's 18A process involved big manufacturing changes and introduced newer technologies all at once, such as a next-generation transistor design and a feature that would improve the delivery of energy to a chip. This created manufacturing risks due to the complexity of fabricating chips, three of the sources said. Intel took on this challenge to close the performance gap with TSMC, but its aggressive timeline for a rollout of unproven systems set it up for failure, said the two people briefed on the company's test data. One likened the effort to a "Hail Mary" football pass. In April, Intel said it had begun a crucial step toward printing Panther Lake chips via 18A known as "risk production." The company also showed off several laptops it said used Panther Lake chips at the Taiwan Computex expo in May. But problems have persisted. One way chip manufacturers gauge progress is to measure the number of defects per area of a chip, which can vary based on a semiconductor's design. Relative to industry standards, the Panther Lake chips had about three times too many defects for Intel to start high-volume production, the two sources briefed on test data said. As of late last year, only around 5% of the Panther Lake chips that Intel printed were up to its specifications, these sources said. This yield figure rose to around 10% by this summer, said one of the sources, who cautioned that Intel could claim a higher number if it counted chips that did not hit every performance target. Reuters could not establish the precise yield at present. In the interview with Reuters, Zinsner disputed these figures and said "yields are better than that." He did not give a number for July or late 2024, and Intel declined to provide this data. "Our expectation is every month they'll get better and better, such that we're at a yield level that is good for production-level Panther Lake at the end of the year," he said, adding: "I wouldn't say that margins are accretive even at those yield levels, so we still have to make improvement." Tan has tapped supply-chain contacts more than usual for Intel and has given them data to help improve chip yields, Zinsner said. For now, Intel remains partly dependent on TSMC to make its in-house designed chips. An Intel executive said in June that Nova Lake, a chip it is planning after Panther Lake, will be made partly on TSMC, too.
Economic Times
5 days ago
- Business
- Economic Times
Intel struggles with key manufacturing process for next PC chip, sources say
Reuters The production process that Intel hoped would pave the way to winning manufacturing deals and restore its edge in churning out high-end, high-margin chips is facing a big hurdle on quality as it puts newer technologies to the test, two people briefed on the matter told Reuters. For months, Intel has promised investors it would increase manufacturing using a process it calls 18A. It spent billions of dollars developing 18A, including the construction or upgrades of several factories, with the goal of challenging Taiwan's chipmaking heavyweight, TSMC. Intel wants to round out its business designing chips that it largely makes in-house and TSMC helps it produce, with a contract manufacturing business that can compete with this key supplier. But whether Intel revives advanced chip production in the U.S. and gets its contract foundry on solid footing depends on closing the technology gap with TSMC. Early tests disappointed customers last year, but Intel has said its 18A is on track to make its "Panther Lake" laptop semiconductors at high volume starting in 2025, which include next-generation transistors and a more efficient way to deliver power to the chip. The chipmaker has hoped that producing such an advanced in-house chip would grow external interest in its foundry, at a time when new CEO Lip-Bu Tan has explored a major shift to course-correct that fledgling business, Reuters previously reported. Yet only a small percentage of the Panther Lake chips printed via 18A have been good enough to make available to customers, said the two people, who were briefed on the company's test data since late last year. The sources spoke on condition of anonymity because Intel did not authorize them to disclose such information. This percentage figure, known as yield, means Intel may struggle to make its high-end laptop chip profitably in the near future. Yield may inch up or down as a foundry optimizes its manufacturing process. Companies also calculate yield in a variety of ways, which can make this critical data a moving goal post, the two people and two additional sources with knowledge of Intel's manufacturing operation said. Yields generally "start off low and improve over time," Intel's Chief Financial Officer David Zinsner told Reuters in a July 24 interview. For Panther Lake, "it's early in the ramp," he said. In a statement on July 30, Intel added: "Our performance and yield trajectory gives us confidence this will be a successful launch that further strengthens Intel's position in the notebook market." Intel in the past has aimed for a yield north of 50% before ramping production because starting any earlier risked damaging its profit margin, three of the sources said. Intel typically does not make the lion's share of its profit until yields reach roughly 70% to 80%, key for a chip as small as Panther Lake where many defects would make it a tough sell, the three people said. Profit also flows from market expansions and building up factory output, Intel said. An immense yield increase would be a tall task by Panther Lake's fourth-quarter launch, the two people with knowledge of Intel's manufacturing operation said. But without such a jump, Intel may have to sell some chips at a lower profit margin or at a loss, the two sources briefed on test data said. Panther Lake is "fully on track," Intel said in its July 30 comment. Intel did not specify the yield threshold at which its chips become profitable. The company has warned it could exit leading-edge manufacturing entirely if it does not land external business for 14A, which is 18A's next-generation successor. 'Hail Mary' Intel's 18A process involved big manufacturing changes and introduced newer technologies all at once, such as a next-generation transistor design and a feature that would improve the delivery of energy to a chip. This created manufacturing risks due to the complexity of fabricating chips, three of the sources said. Intel took on this challenge to close the performance gap with TSMC, but its aggressive timeline for a rollout of unproven systems set it up for failure, said the two people briefed on the company's test data. One likened the effort to a "Hail Mary" football pass. In April, Intel said it had begun a crucial step toward printing Panther Lake chips via 18A known as "risk production." The company also showed off several laptops it said used Panther Lake chips at the Taiwan Computex expo in May. But problems have persisted. One way chip manufacturers gauge progress is to measure the number of defects per area of a chip, which can vary based on a semiconductor's design. Relative to industry standards, the Panther Lake chips had about three times too many defects for Intel to start high-volume production, the two sources briefed on test data said. As of late last year, only around 5% of the Panther Lake chips that Intel printed were up to its specifications, these sources said. This yield figure rose to around 10% by this summer, said one of the sources, who cautioned that Intel could claim a higher number if it counted chips that did not hit every performance target. Reuters could not establish the precise yield at present. In the interview with Reuters, Zinsner disputed these figures and said "yields are better than that." He did not give a number for July or late 2024, and Intel declined to provide this data. "Our expectation is every month they'll get better and better, such that we're at a yield level that is good for production-level Panther Lake at the end of the year," he said, adding: "I wouldn't say that margins are accretive even at those yield levels, so we still have to make improvement." Tan has tapped supply-chain contacts more than usual for Intel and has given them data to help improve chip yields, Zinsner said. For now, Intel remains partly dependent on TSMC to make its in-house designed chips. An Intel executive said in June that Nova Lake, a chip it is planning after Panther Lake, will be made partly on TSMC, too. Elevate your knowledge and leadership skills at a cost cheaper than your daily tea. Berlin to Bharuch: The Borosil journey after the China hit in Europe FIIs are exiting while retail investors stay put. Will a costly market make them pay? BlackRock returns, this time with Ambani. Will it be lucky second time? Paid less than plumbers? 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Time of India
5 days ago
- Business
- Time of India
Intel struggles with key manufacturing process for next PC chip, sources say
Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads The production process that Intel hoped would pave the way to winning manufacturing deals and restore its edge in churning out high-end, high-margin chips is facing a big hurdle on quality as it puts newer technologies to the test, two people briefed on the matter told months, Intel has promised investors it would increase manufacturing using a process it calls 18A. It spent billions of dollars developing 18A, including the construction or upgrades of several factories, with the goal of challenging Taiwan's chipmaking heavyweight, TSMC . Intel wants to round out its business designing chips that it largely makes in-house and TSMC helps it produce, with a contract manufacturing business that can compete with this key supplier. But whether Intel revives advanced chip production in the U.S. and gets its contract foundry on solid footing depends on closing the technology gap with tests disappointed customers last year, but Intel has said its 18A is on track to make its " Panther Lake " laptop semiconductors at high volume starting in 2025, which include next-generation transistors and a more efficient way to deliver power to the chip. The chipmaker has hoped that producing such an advanced in-house chip would grow external interest in its foundry, at a time when new CEO Lip-Bu Tan has explored a major shift to course-correct that fledgling business, Reuters previously only a small percentage of the Panther Lake chips printed via 18A have been good enough to make available to customers, said the two people, who were briefed on the company's test data since late last year. The sources spoke on condition of anonymity because Intel did not authorize them to disclose such percentage figure, known as yield, means Intel may struggle to make its high-end laptop chip profitably in the near may inch up or down as a foundry optimizes its manufacturing process. Companies also calculate yield in a variety of ways, which can make this critical data a moving goal post, the two people and two additional sources with knowledge of Intel's manufacturing operation generally "start off low and improve over time," Intel's Chief Financial Officer David Zinsner told Reuters in a July 24 Panther Lake, "it's early in the ramp," he said. In a statement on July 30, Intel added: "Our performance and yield trajectory gives us confidence this will be a successful launch that further strengthens Intel's position in the notebook market."Intel in the past has aimed for a yield north of 50% before ramping production because starting any earlier risked damaging its profit margin, three of the sources typically does not make the lion's share of its profit until yields reach roughly 70% to 80%, key for a chip as small as Panther Lake where many defects would make it a tough sell, the three people said. Profit also flows from market expansions and building up factory output, Intel immense yield increase would be a tall task by Panther Lake's fourth-quarter launch, the two people with knowledge of Intel's manufacturing operation said. But without such a jump, Intel may have to sell some chips at a lower profit margin or at a loss, the two sources briefed on test data Lake is "fully on track," Intel said in its July 30 comment. Intel did not specify the yield threshold at which its chips become company has warned it could exit leading-edge manufacturing entirely if it does not land external business for 14A, which is 18A's next-generation 18A process involved big manufacturing changes and introduced newer technologies all at once, such as a next-generation transistor design and a feature that would improve the delivery of energy to a chip. This created manufacturing risks due to the complexity of fabricating chips, three of the sources took on this challenge to close the performance gap with TSMC, but its aggressive timeline for a rollout of unproven systems set it up for failure, said the two people briefed on the company's test data. One likened the effort to a "Hail Mary" football April, Intel said it had begun a crucial step toward printing Panther Lake chips via 18A known as "risk production." The company also showed off several laptops it said used Panther Lake chips at the Taiwan Computex expo in problems have way chip manufacturers gauge progress is to measure the number of defects per area of a chip, which can vary based on a semiconductor's design. Relative to industry standards, the Panther Lake chips had about three times too many defects for Intel to start high-volume production, the two sources briefed on test data of late last year, only around 5% of the Panther Lake chips that Intel printed were up to its specifications, these sources said. This yield figure rose to around 10% by this summer, said one of the sources, who cautioned that Intel could claim a higher number if it counted chips that did not hit every performance target. Reuters could not establish the precise yield at the interview with Reuters, Zinsner disputed these figures and said "yields are better than that." He did not give a number for July or late 2024, and Intel declined to provide this data."Our expectation is every month they'll get better and better, such that we're at a yield level that is good for production-level Panther Lake at the end of the year," he said, adding: "I wouldn't say that margins are accretive even at those yield levels, so we still have to make improvement."Tan has tapped supply-chain contacts more than usual for Intel and has given them data to help improve chip yields, Zinsner now, Intel remains partly dependent on TSMC to make its in-house designed chips. An Intel executive said in June that Nova Lake, a chip it is planning after Panther Lake, will be made partly on TSMC, too.
Engadget
5 days ago
- Business
- Engadget
Intel's next-gen manufacturing process is reportedly still struggling
Intel is reportedly still struggling with a chipmaking process crucial to its future. Reuters reports that the company's 18A process is still producing low yields and high defect rates. Intel has invested billions of dollars in the manufacturing process, on which it's pinned its hopes of gaining ground on TSMC. This isn't the first concerning news about 18A. Last year, a report stated that Broadcom was unhappy with the results of a test run for a potential order. However, Intel insisted at the time that 18A was on track to make its upcoming Panther Lake chips at volume later this year. "Our performance and yield trajectory gives us confidence this will be a successful launch that further strengthens Intel's position in the notebook market," Intel said last month. Intel has typically aimed for a yield of at least 50 percent of usable chips before scaling up production. The company is said to make the bulk of its profit after reaching 70 to 80 percent. Last year, 18A's usable Panther Lake chips had reportedly only reached a five percent threshold. Intel had aimed for 10 percent by this summer. Tuesday's report doesn't state 18A's current yield, only describing it as a small percentage. In a statement sent to Engadget, an Intel spokesperson said it is pleased with 18A's current state. "We feel very good about our trajectory on Intel 18A, and it will be the foundation of multiple generations of client and server products in the coming years," the spokesperson wrote. "Panther Lake is going to be a great product for Intel and our partners," the company continued, adding that its launch is still on track for later this year. In a July interview with Reuters , Intel's Chief Financial Officer David Zinsner suggested that 18A's yields were better than reports claimed. He added that yields tend to "start off low and improve over time." The company's 18A process is a risky bet, combining manufacturing changes with a next-gen transistor design. Intel embraced the challenge with an aggressive timeline that one of Reuters ' sources called a hail mary. 18A going well would also help attract business for its upcoming 14A process. Last month, Intel warned investors that it may have to leave chip manufacturing altogether if it doesn't land 14A contracts. The company needs all the help it can get. It recently confirmed that it would cut around 20 percent of its workforce by the end of this year. That follows 20,000 job cuts from June 2024 to July 2025. Earlier this year, it took on a new CEO to try to right the ship.
