Nvidia and Broadcom testing chips on Intel manufacturing process
Technology
The tests by Nvidia and Broadcom are using Intel's 18A process
SAN FRANCISCO/SINGAPORE (Reuters) - Chip designers Nvidia (NVDA.O) and Broadcom (AVGO.O) are running manufacturing tests with Intel (INTC.O) two sources familiar with the matter told Reuters, demonstrating early confidence in the struggling company's advanced production techniques.
The two tests, which have not been reported previously, indicate the companies are moving closer to determining whether they will commit hundreds of millions of dollars' worth of manufacturing contracts to Intel. The decision to do so could generate a revenue windfall and endorsement for Intel's contract manufacturing business that has been beset by delays and has not yet announced a prominent chip designer customer.
Advanced Micro Devices (AMD.O) is also evaluating whether Intel's 18A manufacturing process is suitable for its needs but it was unclear if it had sent test chips through the factory. AMD declined to comment.
An Intel spokesperson said, "We don't comment on specific customers but continue to see strong interest and engagement on Intel 18A across our ecosystem."
The tests by Nvidia and Broadcom are using Intel's 18A process, a series of technologies and techniques developed over years that is capable of making advanced artificial intelligence processors and other complex chips. The 18A process competes with similar technology from Taiwan's TSMC, which dominates the global chip market.
Nvidia declined to comment. Broadcom did not respond to a request for comment.
These tests are not being conducted on complete chip designs but are instead aimed at determining the behavior and capabilities of Intel's 18A process. Chip designers sometimes purchase wafers to test specific components of a chip to work out any kinks before committing to producing a full design at high volume.
Testing is under way and can last months. It is unclear when the tests started.
However, manufacturing tests are no assurance that Intel will eventually win new business. Last year, Reuters reported that a batch of Broadcom tests disappointed its executives and engineers. At the time, Broadcom said it was continuing to review Intel's foundry.
The early endorsement is happening against the backdrop of potential further delays in Intel's ability to deliver chips for some contract manufacturing customers that rely on third-party intellectual property, according to two additional sources and documents seen by Reuters.
The success of Intel's contract manufacturing business, or foundry, was the centerpiece of former CEO Pat Gelsinger's plan to revive the once iconic American technology company. But the board fired Gelsinger in December.
The interim co-CEOs mothballed its forthcoming artificial intelligence chip, which pushed back any hopes of a viable AI chip of its own until at least 2027.
Intel's struggling business has attracted the attention of U.S. President Donald Trump's administration, which is keen on restoring American manufacturing prowess and battling China. Intel is considered the only hope for the U.S. to manufacture the most advanced semiconductors within its borders.
Earlier this year, administration officials met with C.C. Wei, CEO of Taiwan's TSMC (2330.TW), in New York about taking a majority stake in a joint venture in Intel's factory unit, according to a source familiar with the matter. The talks included the possibility of other chip designers purchasing equity stakes in the new venture.
TSMC declined to comment. Intel did not respond to questions about the meetings.
Intel has said it signed deals with Microsoft (MSFT.O) and Amazon.com (AMZN.O) to produce chips on 18A, but details are scarce. Intel did not disclose which chip Microsoft plans to use Intel's factories for or a specific product in Amazon's case. It was unclear how much manufacturing volume either deal represents.
