Chipmakers Nvidia and Broadcom are conducting manufacturing tests with Intel, signaling initial confidence in Intel’s advanced chip production capabilities, according to sources familiar with the matter. These tests, which had not been previously disclosed, suggest that both companies are evaluating the potential of investing significant manufacturing contracts with Intel. If finalized, such commitments could bring substantial revenue and credibility to Intel’s contract manufacturing division, which has faced challenges and has yet to secure a major chip designer as a client.
Advanced Micro Devices (AMD) is also assessing Intel’s 18A manufacturing process, though it remains unclear whether the company has begun testing chips. AMD has not provided any comments on the matter. Meanwhile, an Intel representative stated, “We don’t comment on specific customers but continue to see strong interest and engagement on Intel 18A across our ecosystem.”
The testing process utilizes Intel’s 18A technology, a manufacturing approach developed to produce high-performance AI processors and other advanced chips. This technology is a direct competitor to the offerings of Taiwan’s TSMC, which currently dominates the global semiconductor market. Neither Nvidia nor Broadcom has publicly commented on the tests.
Rather than evaluating fully designed chips, these tests focus on specific chip components to assess the performance and viability of Intel’s 18A process. Such trials help chip designers refine their products before committing to large-scale production. Testing is ongoing and can take several months, though the exact start date remains unknown.
Despite these evaluations, there is no guarantee that Intel will secure long-term business from Nvidia, Broadcom, or AMD. Previous tests conducted by Broadcom reportedly did not meet the company’s expectations, although it has continued to review Intel’s manufacturing capabilities. Additionally, some sources and documents indicate that Intel is facing potential delays in supplying chips to contract manufacturing clients that depend on third-party intellectual property.
Intel’s contract manufacturing business, which was a key part of former CEO Pat Gelsinger’s strategy to revive the company, has struggled to gain traction. Gelsinger was dismissed in December, and under new leadership, Intel postponed its AI chip development, pushing its in-house AI ambitions to at least 2027.
The company’s challenges have drawn interest from the U.S. government, which is eager to strengthen domestic semiconductor production to compete with China. Intel remains the primary hope for producing cutting-edge chips within the U.S. Earlier this year, government officials reportedly met with TSMC’s CEO in New York to discuss the possibility of the Taiwanese company taking a majority stake in a joint venture with Intel’s factory unit. The discussions also included potential equity investments from other chipmakers.
Intel’s 18A process, which had already been delayed to 2026 for contract manufacturing clients, is now experiencing an additional six-month setback, according to supplier documents and industry sources. The delay stems from prolonged intellectual property qualification, which is essential for smaller and mid-sized chip designers to utilize the process effectively. The exact reason for this delay remains unclear, though such qualification ensures compatibility and reliability for chip production.
In response to inquiries about the timeline, Intel reaffirmed its commitment to ramping up production in the latter half of the year, stating that customer designs are expected to be processed within 2024. Industry analysts note that many chip designers are closely monitoring Intel’s progress before making a decision to invest.
Intel’s 18A technology currently performs between TSMC’s latest and previous-generation processes, according to Synopsys CEO Sassine Ghazi. Synopsys provides crucial intellectual property for Intel’s foundry operations.
A delay in large-scale chip production could impact Intel’s foundry revenue, which is currently generated primarily from manufacturing its own chips. The foundry division’s revenue is projected to reach $16.47 billion in 2025, though most of this will come from Intel’s internal operations. Last year, the segment’s revenue dropped by 60%, and the company does not anticipate breaking even until at least 2027.
Intel has previously announced deals with Microsoft and Amazon to manufacture chips using the 18A process, but details regarding these agreements remain scarce. The extent of manufacturing volume associated with these deals has not been disclosed.
