[News] Intel Struggles Persist as 18A Process Rumored to Report Low 10% Yield, Hindering Mass Production

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Amid Intel’s struggles on finding a successor after former CEO Pat Gelsinger’s retirement a few days ago, Team Blue seems to have a much more serious problem regarding its 18A process, once touted as the lifesaver of its foundry unit.

According to South Korean media outlet Chosun Daily, Intel’s highly anticipated 18A process, which the company originally planned to begin mass production next year, is now said to have a yield rate of under 10%, rendering mass production unattainable.

As per a previous report from Reuters, Broadcom’s initial tests with Intel’s 18A (1.8nm-class) process did not meet expectations. The report noted that Broadcom tested Intel’s 18A by producing wafers with typical design patterns. However, its engineers and executives were said to be disappointed with the results, regarding the process as “not ready for high-volume production.”

Now, according to the Chosun Daily and Wccftech, Broadcom has canceled its orders with Intel amid the yield issues with 18A, and is now exploring other viable options.

The lack of yield rates and the struggles with Intel Foundry (IFS) are reportedly key factors behind the apparent dismissal of CEO Pat Gelsinger, as per Wccftech.

Intel may be faced with the dilemma in terms of what to do with its foundry unit next. Though a sell-off of the division appears to be imminent, the USD 7.86 billion in direct funding under the U.S. CHIPS Act it just secured has a premise: the company would not be allowed to sell its stake in the chipmaking unit at will.

In a securities filing seen by Reuters lately, the U.S. government subsidies Intel received impose conditions on its ownership of the foundry unit if the unit is spun off into a separate entity. Specifically, Intel must retain at least 50.1% ownership of Intel Foundry if it becomes a privately held company.

Read more

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(Photo credit: Intel)