Intel announced that its new 18A manufacturing process has entered risk production, aiming to attract external customers with improved performance and design flexibility. The company cited strong demand for its central processors, particularly from AI service providers.
Intel's advancement in its 18A manufacturing process is crucial for its strategy to regain semiconductor manufacturing leadership and compete for foundry business, potentially impacting the supply chain for AI hardware and other advanced chips.
Intel announced on Tuesday that its new 18A manufacturing process has entered initial risk production. This move is intended to demonstrate the company's commitment to its manufacturing roadmap and potentially attract external customers for the technology.
Intel CEO Lip-Bu Tan has begun to view the 18A process as a potential offering for external clients, a shift from his earlier stance that it would primarily benefit Intel's own products, according to finance chief David Zinsner. The 18A-P variant offers a 9% performance increase at the same power level, or an 18% power reduction at the same speed, along with improved thermals and design flexibility. It is fully compatible with the existing Intel 18A process, allowing for the reuse of intellectual property and design flows.
The company is experiencing strong demand for its central processors, particularly from firms providing AI services. This demand was so robust in the first quarter that Intel sold chips it had previously written off. For the second quarter, Intel forecast revenue between $13.8 billion and $14.8 billion, exceeding the LSEG-compiled estimate of $13.07 billion.
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