San Francisco/Singapore (Reuters) – NVIDIA (NVDA) and Broadcom (AVGO) chip designers conduct production tests with Intel (Intc), said two sources familiar with the question, demonstrating early confidence in the modern techniques of the production company.
The two tests, which have not been reported earlier, show that companies are approaching to determine whether they will carry out hundreds of production contracts for the production of millions of dollars. The solution to this could generate revenue and approval for the business for the production of Intel contracts, which has been obsessed with delays and has not yet announced a prominent client of a chip designer.
Advanced micro devices (AMD) also evaluates whether the Intel 18A production process is suitable for its needs, but it was unclear whether he had sent test chips through the factory. AMD declined to comment.
Intel’s shares increased by 5% in Monday Surgery.
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A spokesman for Intel said: “We do not comment on specific clients, but we continue to see a strong interest and commitment to the Intel 18A in our ecosystem.”
NVIDIA and Broadcom tests use the Intel 18A process, a series of technologies and techniques developed over the years that are able to make modern processors for artificial intelligence and other sophisticated chips. The 18A process competes with Taiwan’s TSMC (TSM) technologies, which dominates the global chip market.
Nvidia declined to comment. Broadcom did not answer a request for comment.
These tests are not performed on complete chip designs, but instead are aimed at determining the behavior and capabilities of the Intel 18A process. Chip designers sometimes buy waffles to test specific chip components to make all kinds of curves before they commit to producing a full -volume design.
Close to Silicon waffle, set out in the Taiwanese research institution for semiconductors. (Annabelle Chih/Getty Images) ·Annabelle Chih through Getty Images
Testing is underway and can last for months. It is unclear when the tests started.
However, production tests are not sure that Intel will ultimately win a new business. Last year, Reuters announced that a batch of Broadcom tests disappointed its executives and engineers. At that time, Broadcom said he was still reviewing Intel’s foundry.
Early approval occurs against the background of potential further delays in Intel’s ability to deliver chips to some customers for the production of contracts that rely on intellectual property of third parties, according to two additional sources and documents observed by Reuters.
The success of the business for the production of Intel or Fundal contracts was the central part of the plan of former CEO Pat Gelsinger to revive once the emblematic American technology company. But the board fired Gelsinger in December.
The temporary joint CEO motivates its upcoming AI chip, which has repelled any hopes for a viable AI chip at least until 2027.
Intel’s Intel fight has caught the attention of US President Donald Trump’s administration, which wants to restore US production wisdom and fight China. Intel is considered the only hope for the United States to produce the most modern semiconductors within its borders.
Earlier this year, the administration employees met with CC Wei, CEO of Taiwan’s TESMC, in New York for taking a majority stake in a joint venture at the Intel factory unit, according to a source familiar with the question. The conversations included the opportunity for other chip designers to buy shares shares in the new endeavor.
TSMC declined to comment. Intel did not answer questions about meetings.
Intel said he has signed deals with Microsoft (MSFT) and Amazon.com (AMZN) to produce 18A chips, but the details are scarce. Intel has not revealed which Chip Microsoft plans to use Intel or specific product factories in Amazon’s case. It was unclear how much a production volume was each transaction.
The 18A process was already delayed by 2026 for potential customers for contract production. Now, according to the provider’s documents, reviewed by Reuters and two sources familiar with the question, Intel has repelled its time line for another six months.
The delay is due to the need to qualify a decisive intellectual property for the 18A process, which takes more time than expected. Without the qualified basic building blocks of intellectual property, which are relying on small and medium -sized chips, potential customers could not produce chips on 18a by at least mid -2026, according to both sources and documents.
It is not clear why the intellectual property qualification is delayed. The qualifying intellectual property includes a guarantee from the supplier that it will work on a production process.
Asked about the delay, Intel said, “(We will start to ignite production in the second half of this year by fulfilling the commitments we have made to our customers.” The company added that it expects its factories to receive designs from customers this year.
Nvidia’s founder and CEO Jensen Huang spoke during a NVIDIA press conference before the CES Tech show on Monday, January 6, 2025, in Las Vegas. (AP Photo/Abbie Parr) ·Associated Press
Many chip designers are watching Intel’s progress carefully in the hope that they will soon be able to use its production, according to industry experts.
The Intel 18A process is currently being implemented at the level between the most modern TSMC process and its predecessor, Sasin Gazi said in an interview with his financial results. Synopsys delivers some of the decisive intellectual property needed for Intel foundry.
“There are many clients at the moment waiting – I’m talking about foundry clients – to see the Intel status. Will I engage?” Gazi said.
The delay in the mass production of a significant number of customer chips can stop the revenue from the Intel cast, which currently produces the company’s own chips. Intel is expected to generate revenue of $ 16.47 billion from the foundry business in 2025, although almost all these revenue is from Intel itself.
The revenue for the casting segment declined by 60% last year, and the company said it would not break even by at least 2027.
