Intel jumps 7% in pre-market trading, reports: Nvidia and Broadcom "test the waters" for the company's 18A process
According to media reports citing sources, chip giants Nvidia and Broadcom are testing chip manufacturing using Intel's 18A process, which has boosted market confidence in Intel. The 18A process is an advanced chip manufacturing technology developed by Intel in recent years, comparable to similar technologies from industry leader TSMC
Intel's 18A process receives testing from Nvidia and Broadcom, is there a glimmer of hope for its foundry business?
On Monday, Intel's stock price jumped 7% in pre-market trading. According to media reports citing sources, chip giants Nvidia and Broadcom are using Intel's 18A process for chip manufacturing tests, which has boosted market confidence in Intel.
Sources told Reuters that Nvidia and Broadcom are testing Intel's 18A process. Although these tests are not aimed at complete chip designs, but rather focus on assessing the performance and potential of the 18A process, it is still seen as a positive signal that the two companies may invest hundreds of millions of dollars in manufacturing contracts with Intel.
The 18A process is an advanced chip manufacturing technology developed by Intel in recent years, aimed at producing high-performance artificial intelligence processors and other complex chips, directly competing with similar technologies from industry leader TSMC.
Intel's foundry business faces numerous challenges
Despite gaining favor from the two giants, Intel's foundry business still faces many challenges. Data shows that revenue from this business fell by 60% last year, and it is expected to take at least until 2027 to achieve breakeven. In 2025, Intel's foundry business is expected to generate $16.47 billion in revenue, but almost all of it will come from Intel itself.
Due to the need to certify key intellectual property for the 18A process, this process is taking longer than expected, leading to a potential six-month delay in the mass production timeline to mid-2026.
Sassine Ghazi, CEO of Synopsys, stated in an interview after the earnings report:
The current performance of Intel's 18A process is between TSMC's most advanced process and the previous generation process. Many potential customers are closely watching Intel's progress and are taking a wait-and-see approach regarding collaboration.
Whether the 18A process can achieve mass production as planned and gain recognition from more customers will be key to whether Intel's foundry business can turn around its fortunes