Intel’s advanced chipmaking process reportedly runs into trouble

Intel’s chipmaking business may have run into a bit of a snag, as recent tests using the company’s next-gen manufacturing process have failed, according to Reuters.

To carry out the tests, Intel reportedly sent Broadcom’s silicon wafers — or the components used as a semiconductor’s base — through its more efficient 18A manufacturing process. After examining the results, Broadcom found that the process isn’t ready for high-volume production, Reuters reports.

The 18A process is a key part of Intel’s plan to reestablish itself as a leading chipmaker. Intel has been developing this technology for a few years now, and it plans to start producing chips using the process with major partners like Microsoft starting next year. However, the company has had a troubled past few months, as it reported $1.6 billion in losses in the second quarter of 2024 and announced layoffs affecting more than 15,000 workers. It’s also dealing with widespread issues affecting its 13th and 14th Gen CPUs.

“Intel 18A is powered on, healthy and yielding well, and we remain fully on track to begin high volume manufacturing next year,” an Intel 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.” The Verge reached out to Intel with a request for comment but didn’t immediately hear back.

Over the weekend, Reuters reported that Intel CEO Pat Gelsinger will soon pitch his plans to overhaul the company’s spending and cut down on unnecessary assets. The company is reportedly considering selling off Altera, an Intel-owned business that creates programmable logic devices, and may pause work on its chipmaking factory in Germany. Intel has already delayed the $20 billion plant it has planned in Ohio.