Nvidia Corp. and Broadcom Inc. are conducting manufacturing tests using Intel Corp.'s advanced 18A semiconductor production process, according to sources familiar with the matter. The tests signal growing interest in Intel's contract manufacturing business, which has struggled with delays and has yet to secure a major chip designer as a long-term customer.
The testing, which has not been previously reported, could lead to significant manufacturing contracts worth hundreds of millions of dollars for Intel if the chipmakers decide to proceed. "We don't comment on specific customers but continue to see strong interest and engagement on Intel 18A across our ecosystem," an Intel spokesperson said.
The tests are focused on evaluating Intel's 18A process-a cutting-edge semiconductor manufacturing technique that competes with Taiwan Semiconductor Manufacturing Co.'s (TSMC) most advanced technology. However, these evaluations are not full-scale chip production runs. Instead, chip designers typically purchase test wafers to assess specific components before committing to large-scale manufacturing.
Advanced Micro Devices (AMD) is also considering whether Intel's 18A process meets its needs, though it remains unclear if the company has submitted test chips. AMD declined to comment.
While the tests indicate confidence in Intel's foundry technology, past evaluations have yielded mixed results. Last year, Broadcom's initial testing did not meet expectations, according to sources. At the time, the company stated that it was continuing to assess Intel's foundry capabilities.
Intel's manufacturing delays remain a challenge. The company originally planned to make its 18A process available for contract manufacturing customers in 2026, but recently pushed the timeline back by six months. According to supplier documents and sources cited by Reuters, the delay stems from the prolonged qualification process for crucial intellectual property (IP) needed by smaller and mid-size chip designers. Without certified IP, many potential customers cannot proceed with chip production on the 18A process until at least mid-2026.
Intel responded to questions about the delay by stating, "(We will) begin ramping production in the second half of this year, delivering on the commitments we have made to our customers." The company also said it expects to begin receiving customer designs later this year.
Intel's foundry unit is a key pillar of the company's turnaround strategy. The business has been a priority for U.S. policymakers, who see Intel as critical to boosting domestic semiconductor manufacturing and reducing reliance on TSMC and South Korea's Samsung Electronics. Earlier this year, U.S. government officials met with TSMC CEO C.C. Wei in New York to discuss the possibility of TSMC taking a majority stake in a joint venture with Intel's foundry unit. The talks also included discussions about other chipmakers acquiring equity stakes in the new venture.
Intel's contract manufacturing segment remains under financial pressure. Revenue from the business declined 60% last year, and the company has stated that it does not expect to break even until at least 2027. Analysts project Intel's foundry business will generate $16.47 billion in revenue in 2025, but nearly all of that revenue is expected to come from Intel's internal chip production rather than external customers.
Nvidia and Broadcom's ongoing evaluations could provide a much-needed endorsement for Intel's foundry ambitions. Industry observers note that many potential customers are watching these tests closely before making their own manufacturing commitments. "Right now, there are a lot of customers waiting-I'm talking foundry customers-to see the state of Intel. Will I commit? Will I not?" said Sassine Ghazi, CEO of Synopsys, a company that supplies crucial intellectual property for Intel's foundry operations.
