According to reports, Intel's upcoming mass production of the cutting-edge process technology Intel 18A will not only adopt internal products but will also receive foundry orders from several ASIC manufacturers, including NVIDIA and Broadcom. Supply chain insiders indicate that these clients remain optimistic about Intel 18A.
Once in a difficult situation, $Intel (INTC.US)$ the foundry Business may usher in a critical turning point.
On April 25, according to technology media WccFtech, the cutting-edge process technology Intel 18A, which Intel is about to enter mass production, will not only see internal product adoption but will also gain support from including $NVIDIA (NVDA.US)$ 、 $Broadcom (AVGO.US)$ Foundry Orders from several ASIC manufacturers including.
Reports indicate that supply chain sources say these customers are optimistic about Intel 18A.
Analysts believe that for Intel, the success of the 18A process technology could be key to turning around its foundry business, especially as it anticipates a decline in foundry revenue in its latest Earnings Reports for the second quarter.
18A process or widespread attention from industry giants.
Reports indicate that Intel's 18A process is attracting widespread interest from industry giants. ASIC manufacturers like NVIDIA and Broadcom have already started collaborating with Intel for sample testing of the 18A process. So far, the feedback has remained positive.
Intel is collaborating with NVIDIA, Broadcom, Faraday Technology, $IBM Corp (IBM.US)$ and several other partners to ensure Intel 18A meets Industry standards. This clearly indicates that 18A has generated significant interest in the Industry.
Considering that top Technology giants like NVIDIA are seeking to diversify their supply chains and are more interested in domestic supply in the USA, Intel's foundry services may become an important partner for NVIDIA.
Reportedly, Intel itself will become the main adopter of the 18A process technology, aiming for a "70% adoption rate of its own nodes" in its products. This indicates that Intel's ambitions for vertical integration in the supply chain are being realized.
Notably, the computing module of Nova Lake will not be entirely outsourced to Taiwan Semiconductor, and Intel's 18A will likely play a role in it, demonstrating Intel's confidence in its internal manufacturing.
The 18A process may be a key factor in the turnaround of Intel's foundry business.
Wall Street Journal previously mentioned that Intel's latest Earnings Reports show that, despite exceeding expectations in the first quarter, the outlook for the second quarter is bleak, and the company has lowered its annual capital expenditure targets.
Intel's new CEO, Pat Gelsinger, stated: "The first quarter is a positive starting point, but we clearly recognize that regaining market share and achieving sustainable growth is not an overnight task."
Although Intel's foundry revenue in the first quarter increased by 7.1% year on year, reaching $4.67 billion, exceeding the market expectation of $4.3 billion, Intel anticipates a decline in foundry revenues due to suppressed production capacity for the 7-nanometer chip.
In this context, whether the 18A process can be mass-produced on schedule and gain market recognition will be a crucial turning point for the future development of Intel's foundry business.
Editor/rice
