Intel is reportedly still struggling with a chip manufacturing process that is critical to its future. Reuters Information that the company’s 18A process still offers low returns and high failure rates. Intel has invested billions of dollars in the manufacturing process and hopes to gain ground on TSMC.
This is not the first disturbing news about 18A. Last year, a report revealed that Broadcom was unhappy with the results of a test for a potential contract. However, Intel insisted at the time that the 18A was on its way to shipping it into the future. Panther Lake wood chips in volume at the end of the year. “Our performance and earnings give us confidence that this will be a successful launch that will further strengthen Intel’s position in the notebook market,” Intel said last month.
Intel typically targets at least a 50% yield of usable chips before ramping up production. After reaching 70-80%, the company should make the most of its profit. Last year it was reported that usable 18A Panther Lake chips only reached the 5% mark. During the summer, Intel aimed for 10%. Tuesday’s report made no mention of 18A’s current yield, describing it as just a few percent.
In a statement to Engadget, an Intel spokesperson said they were satisfied with the current status of the 18A. “We are very pleased with the development of the Intel 18A, which will underpin several generations of client and server products in the coming years,” the spokesperson wrote. “Panther Lake will be a great product for Intel and our partners,” the company continued, adding that it is expected to hit the market later this year.
In an interview given in July to ReutersIntel CFO David Zinsner said the 18A’s performance is better than reports say. He added that returns are often low initially and improve over time.
The company’s 18A process is a risky venture because it combines manufacturing changes with next-generation transistor design. Intel has risen to the challenge with an aggressive program ReutersSources called it a Hail Mary. A good approach to 18A would also help attract companies to the upcoming 14A test. Last month, Intel said warned Investors believe the company could be forced to halt chip production altogether if it fails to win 14A contracts.
The company needs all the help it can get. The company recently confirmed that it will cut around 20% of its workforce by the end of this year. This follows 20,000 job losses between June 2024 and July 2025. Earlier this year, a new CEO was hired to try to right the ship.