Intel has taken another step in its attempt to revive its chipmaking business, beginning early production of a new manufacturing process that could help it compete for major outside customers, including Apple.
The U.S. semiconductor group said its 18A-P process has entered risk production, an early stage used to test whether the technology can meet customer requirements before full commercial qualification.
The announcement was made at the VLSI Symposium in Honolulu, Hawaii, and comes as Intel tries to prove it can become a serious contract manufacturer for companies that design their own chips.
For years, Intel struggled with delays and weaker manufacturing performance, allowing Taiwan Semiconductor Manufacturing Co. to strengthen its lead in advanced chip production. The company has since made its foundry business a central part of its turnaround strategy, aiming to produce chips not only for Intel’s own processors but also for global technology firms.
“This is a journey, and while we have more work ahead, we appreciate the opportunity to share the progress we are making,” Intel foundry head Naga Chandrasekaran said in a statement.
Intel said 18A-P builds on its existing 18A technology, which has already been used in PC chips and produced at its Arizona facility. The upgraded process is designed to deliver 9% better performance at the same power level, or reduce power use by 18% while keeping performance unchanged. It is also intended to work with current 18A designs, which could make adoption easier for potential customers.
A possible manufacturing arrangement with Apple has raised expectations around Intel’s foundry plans, although analysts believe the iPhone maker may wait for the newer 18A-P process before making a larger commitment. Apple currently relies heavily on TSMC for the advanced chips used across its devices.
Intel’s biggest test will be whether it can deliver strong yields, a key measure of how many usable chips can be produced from each wafer.
“Yield rate is the number one criteria here,” said chip analyst Neil Shah of Counterpoint Research. “If they can commit to more than 90% yield rate in the first month, I think they can attract a few more customers.”
Intel also faces a technical challenge because many leading customers design Arm-based chips, while Intel’s history is rooted in x86 processors. Shah said TSMC has already mastered that area.
The company may find a nearer-term opportunity in advanced packaging, where demand has surged because of artificial intelligence chips.
“There is a lot of packaging bottlenecks at TSMC,” Shah said. “That is a big opportunity right now, very low hanging opportunity for Intel.”