Chip industry leaders Nvidia and Broadcom are conducting manufacturing tests on Intel’s 18A process, signaling potential confidence in the company’s advanced production techniques. This move, reported by sources familiar with the matter, suggests that Intel may be gaining ground in its efforts to establish itself as a competitive contract chip manufacturer.
The 18A process is one of Intel’s most advanced semiconductor manufacturing technologies. It represents a key part of the company’s strategy to reclaim leadership in the global chip-making industry, which has been dominated by Taiwan Semiconductor Manufacturing Company (TSMC) and Samsung. Intel has faced years of production delays and technological challenges, leading many industry observers to question its ability to compete with these established foundries.
If Nvidia and Broadcom decide to commit to Intel’s manufacturing process, it could mark a significant endorsement of Intel’s capabilities and provide a major boost to its foundry business. Securing contracts from such high-profile chip designers would not only bring in substantial revenue but also enhance Intel’s credibility in the industry.
For Nvidia, which currently relies heavily on TSMC for its cutting-edge GPUs and AI chips, diversifying its supply chain could offer strategic advantages. The ongoing semiconductor supply chain constraints and geopolitical tensions surrounding Taiwan have prompted many companies to seek alternative chip manufacturing partners. Broadcom, a key player in networking and custom semiconductor solutions, could also benefit from having multiple sources for its critical components.
Intel has been aggressively investing in its foundry business, announcing plans for new fabrication plants in the U.S. and Europe. The company’s CEO, Pat Gelsinger, has emphasized Intel’s ambition to become a leading contract manufacturer for the broader semiconductor industry. However, it remains to be seen whether Intel’s 18A process can meet the stringent performance, power, and efficiency requirements of companies like Nvidia and Broadcom.
As these manufacturing tests progress, the industry will be watching closely to see if Intel can secure long-term contracts from these chip giants. A successful deal could reshape the competitive landscape of the semiconductor industry, positioning Intel as a serious contender in the foundry business.
