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Nvidia, Broadcom Said to Be Testing Chips on Intel Manufacturing Process

Advanced Micro Devices is also evaluating whether Intel's 18A manufacturing process is suitable for its needs

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Highlights
  • The tests by Nvidia and Broadcom are using Intel's 18A process
  • The 18A process competes with Taiwan's TSMC
  • Broadcom said it was continuing to review Intel's foundry.
Nvidia, Broadcom Said to Be Testing Chips on Intel Manufacturing Process

Manufacturing tests are no assurance that Intel will eventually win new business

Photo Credit: Freepik

Chip designers Nvidia and Broadcom are running manufacturing tests with Intel, two sources familiar with the matter told Reuters, demonstrating early confidence in the struggling company's advanced production techniques.

The two tests, which have not been reported previously, indicate the companies are moving closer to determining whether they will commit hundreds of millions of dollars' worth of manufacturing contracts to Intel. The decision to do so could generate a revenue windfall and endorsement for Intel's contract manufacturing business that has been beset by delays and has not yet announced a prominent chip designer customer.

Advanced Micro Devices is also evaluating whether Intel's 18A manufacturing process is suitable for its needs but it was unclear if it had sent test chips through the factory. AMD declined to comment.

An Intel spokesperson said, "We don't comment on specific customers but continue to see strong interest and engagement on Intel 18A across our ecosystem."

The tests by Nvidia and Broadcom are using Intel's 18A process, a series of technologies and techniques developed over years that is capable of making advanced Artificial Intelligence processors and other complex chips. The 18A process competes with similar technology from Taiwan's TSMC, which dominates the global chip market.

Nvidia declined to comment. Broadcom did not respond to a request for comment.

These tests are not being conducted on complete chip designs but are instead aimed at determining the behavior and capabilities of Intel's 18A process. Chip designers sometimes purchase wafers to test specific components of a chip to work out any kinks before committing to producing a full design at high volume.

Testing is under way and can last months. It is unclear when the tests started.

However, manufacturing tests are no assurance that Intel will eventually win new business. Last year, Reuters reported that a batch of Broadcom tests disappointed its executives and engineers. At the time, Broadcom said it was continuing to review Intel's foundry.

The early endorsement is happening against the backdrop of potential further delays in Intel's ability to deliver chips for some contract manufacturing customers that rely on third-party intellectual property, according to two additional sources and documents seen by Reuters.

The success of Intel's contract manufacturing business, or foundry, was the centerpiece of former CEO Pat Gelsinger's plan to revive the once iconic American technology company. But the board fired Gelsinger in December.

The interim co-CEOs mothballed its forthcoming artificial intelligence chip, which pushed back any hopes of a viable AI chip of its own until at least 2027.

Intel's struggling business has attracted the attention of U.S. President Donald Trump's administration, which is keen on restoring American manufacturing prowess and battling China. Intel is considered the only hope for the U.S. to manufacture the most advanced semiconductors within its borders.

Earlier this year, administration officials met with C.C. Wei, CEO of Taiwan's TSMC, in New York about taking a majority stake in a joint venture in Intel's factory unit, according to a source familiar with the matter. The talks included the possibility of other chip designers purchasing equity stakes in the new venture.

TSMC declined to comment. Intel did not respond to questions about the meetings.

Intel has said it signed deals with Microsoft and Amazon.com to produce chips on 18A, but details are scarce. Intel did not disclose which chip Microsoft plans to use Intel's factories for or a specific product in Amazon's case. It was unclear how much manufacturing volume either deal represents.

Setback 

The 18A process was already delayed to 2026 for potential contract manufacturing customers. Now, according to supplier documents reviewed by Reuters and two sources familiar with the matter, Intel has pushed back its timeline another six months.

The delay is due to the need to qualify crucial intellectual property for the 18A process, which is taking longer than anticipated. Without the qualified fundamental building blocks of intellectual property that small and mid-size chip designers rely on, a swath of potential customers would be unable to produce chips on 18A until at least mid-2026, according to the two sources and documents.

It is unclear why the intellectual property qualification has been delayed. Qualifying intellectual property includes a guarantee from the supplier that it will work on a given manufacturing process.

Asked about the delay, Intel said, "(We will) begin ramping production in the second half of this year, delivering on the commitments we have made to our customers." The company added that it expects its factories to receive designs from customers this year.

Many chip designers are watching Intel's foundry progress closely in the hope they will be able to use its manufacturing soon, according to industry experts.

Intel's 18A process currently performs at a level between TSMC's most advanced process and its predecessor, Sassine Ghazi, CEO of Synopsys, said in an interview after its financial results. Synopsys supplies some of the crucial intellectual property needed for Intel's foundry.

"Right now, there are a lot of customers waiting - I'm talking foundry customers - to see the state of Intel. Will I commit? Will I not?" Ghazi said.

A delay in mass-producing a significant number of customer chips could stall revenue from Intel's foundry, which currently produces the company's own chips. Intel is expected to generate $16.47 billion (roughly Rs. 1,43,746 crore) in revenue from the foundry business in 2025, though almost all of that revenue is from Intel itself.

Revenue for the foundry segment declined 60 percent last year, and the company has said it will not break even until at least 2027.

© Thomson Reuters 2025

(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)

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Further reading: Nvidia, Broadcom, Intel, AI
 
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