Introduction:
Intel’s ambitious 18A chip manufacturing process, initially hailed as a breakthrough in semiconductor technology, is facing significant challenges. After entering risk production, some key customers who were initially eager to test Intel’s new process have withdrawn after trial production.
This move raises concerns about Intel’s ability to meet its production goals for this advanced node.
While the company has been striving to push forward with the 18A process, recent setbacks paint a less-than-ideal picture for Intel’s future in this critical field.
techovedas.com/intel-accelerates-foundry-plans-18a-chips-in-2026-14a-node-targets-2027
Overview:
Intel’s 18A chip process entered risk production, but several customers withdrew after trial production.
Challenges in advancing both the 18A and 14A technologies are becoming apparent.
Intel’s foundry business is expected to break even in 2027, but external customer demand remains low.
Despite some early reports of high-profile clients, a large portion of foundry revenue still comes from Intel’s own products.
Intel’s 18A setbacks raise questions about its competitiveness in the semiconductor manufacturing sector.
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Intel’s 18A Process Faces Hurdles as Key Customers Step Back
Intel had high hopes for its 18A chip process, which is designed to provide a significant leap in chip performance and efficiency, especially as the semiconductor industry moves toward smaller, more advanced nodes.
However, things have not gone as smoothly as expected. Despite entering risk production and testing chips for external customers, the company has faced challenges in meeting its ambitious goals.
According to a recent Reuters report, Intel’s CFO, David Zinsner, revealed that some of the customers who initially expressed interest in using the 18A process later decided to pull back after trial production.
This unexpected move led to a lower-than-anticipated demand for Intel’s new chips, leaving the company with fewer committed orders.
techovedas.com/intel-most-advanced-process-18a-to-enter-test-production-by-early-2024
Reasons Behind the Setback: Why Customers Are Pulling Back
Performance Concerns:
Customers who tested the Intel’s 18A chip process may have found that the performance of the trial chips did not meet their expectations. In the highly competitive semiconductor market, chipmakers need to deliver more than just incremental improvements.
Intel’s competitors, such as TSMC, have been advancing their own processes, and if Intel’s 18A doesn’t provide a clear edge in terms of power, performance, or cost-efficiency, customers may decide it’s not worth the investment.
/techovedas.com/intels-18a-vs-tsmcs-n2-next-generation-process-nodes
Delays and Technical Challenges:
Intel’s struggle to meet deadlines and technical benchmarks is not new. The company has faced consistent challenges in advancing its chip manufacturing processes.
With both the 18A and the next-generation 14A technologies still in development, Intel may be encountering difficulties in scaling these nodes to mass production.
As a result, customers who are eager to push the boundaries of technology may have decided to look elsewhere.
Lack of Differentiation:
While Intel’s 18A process is positioned as an advanced manufacturing technology, competitors like TSMC and Samsung are also pushing forward with their own innovations in semiconductor manufacturing.
If Intel’s 18A fails to provide a noticeable advantage over the competition, customers may prefer to work with other foundries that can offer more reliable or cost-effective solutions.
techovedas.com/14b-investment-90-market-share-hanmi-semiconductor-leads-the-hbm-bonder-market/
Intel’s Foundry Business and the Road Ahead
Despite the setbacks with the 18A process, Intel’s foundry business has shown some growth. For the first quarter of 2025, the company reported foundry sales of $4.7 billion, a 7% year-over-year increase.
However, a significant portion of this revenue came from chips made for Intel’s own products, rather than external customers.
This reliance on internal production raises questions about Intel’s ability to attract new clients for its foundry services.
Zinsner also noted that Intel’s foundry business is not expected to break even until 2027. Achieving this target will require a substantial amount of revenue from external customers, yet Intel’s current external orders remain “not significant.” If the company is unable to secure more external demand for its chips, it could struggle to reach profitability in its foundry business in the near future.
Rumors of Key Clients Testing Intel’s Process
While the setbacks are concerning, there have been some rumors indicating that high-profile companies are still exploring the potential of Intel’s 18A process.
For instance, in March 2025, reports suggested that AI chip giants NVIDIA and Broadcom were testing Intel’s manufacturing capabilities. Additionally, a more recent report from Chosun Biz indicated that Microsoft has signed a large-scale foundry deal with Intel, which could provide a significant boost to the company’s 18A production.
Despite these developments, the actual volume of customer commitment remains unclear. While these large-scale deals are promising, Intel still faces the challenge of converting these initial tests into long-term, high-volume contracts.
Intel’s Path Forward: Can 18A Regain Momentum?
Intel’s 18A process has the potential to be a game-changer for the company, but the road ahead is uncertain. As of now, the company is dealing with a combination of technical challenges, competition, and a lack of immediate customer demand. Intel must act quickly to address these issues and reassure customers about the viability of its advanced process.
In addition to refining the 18A process, Intel will likely need to accelerate its 14A technology to stay competitive.
The race for the most advanced semiconductor manufacturing technology is incredibly fierce, with companies like TSMC and Samsung continuing to push the boundaries. If Intel can successfully deliver on its promises for both the 18A and 14A processes, it may regain its position as a leader in the semiconductor industry.
techovedas.com/intel-and-samsung-cant-compete-with-tsmc-ceo
Conclusion
With key customers pulling back after trial production and the foundry business struggling to meet external demand, Intel has a long road ahead to prove its capabilities.
The company’s success will depend not only on its ability to overcome technical hurdles but also on its ability to secure external customers who are willing to invest in its cutting-edge technologies.
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