Intel’s next-gen chip manufacturing process reportedly hits snag after failing crucial tests

Intel’s been trying to recapture its glory days and establish itself, once again, as a leading chipmaker. However, this dream has run into a major snag. The company’s next-gen manufacturing process, currently referred to as 18A, has reportedly failed crucial tests, according to Reuters.

Semiconductor developer Broadcom helped conduct these tests as part of an evaluation process for a potential order. The report indicates that Intel sent Broadcom’s silicon wafers, which are the components used to form the base of a semiconductor, through the 18A manufacturing process, which is supposed to increase efficiency. Broadcom was reportedly not happy with the results, suggesting that Intel’s new-fangled manufacturing process isn’t ready for high-volume production.

A Broadcom spokesperson said the company is "evaluating the product and service offerings of Intel Foundry and have not concluded that evaluation." Intel had planned on using this new process to produce chips for major partners like Microsoft beginning next year. Despite these reported test results, the company says that timetable is still viable.

“Intel 18A is powered on, healthy and yielding well, and we remain fully on track to begin high volume manufacturing next year,” a spokesperson told Reuters. “There is a great deal of interest in Intel 18A across the industry but, as a matter of policy, we do not comment on specific customer conversations.”

It’s no secret that Intel has fallen a bit from the chipmaking perch it once dominated. It recently reported $1.6 billion in losses in the second quarter of 2024. This led to layoffs that impacted more than 15,000 workers. It’s also been dealing with widespread stability issues affecting its 13th and 14th Gen CPUs.

Reports indicate that Intel CEO Pat Gelsinger will soon pitch more cost-cutting measures to get the company back on track. These measures allegedly include delays on new manufacturing facilities in Germany and Ohio. The company could also sell off Altera, a business that makes programmable logic devices.