Intel 18A Yield Drops to 10%, Production in Doubt

According to a report from Wccftech, Intel's advanced 18A process technology, seen as crucial for reversing the company's fortunes, is facing significant challenges. Recent leaks reveal that the current yield rate for Intel's 18A process stands at only 10%, a development that has raised concerns in the tech industry.

Earlier in September, Reuters cited sources familiar with the matter, revealing that Intel's foundry business faced a setback after a testing failure with Broadcom, a major chip design company. The tests, which involved using Intel's 18A manufacturing process, were conducted by Broadcom in August. However, after reviewing the test wafers, Broadcom's engineers and executives concluded that the process was not viable for large-scale production.

New reports indicate that Broadcom, one of the primary clients of Intel Foundry, is dissatisfied with the 18A process. Engineers at Broadcom have claimed that the process cannot achieve mass production due to its low yield rate, which appears to be around 10%. As a result, Broadcom is reportedly canceling orders with Intel and seeking alternative solutions.

Intel's own data, released a few months ago, showed that the defect density (D0) of the 18A process was below 0.40 defects per square centimeter. However, industry insiders note that a D0 below 0.2 is considered a baseline for initial production, and a D0 under 0.1 is necessary for high-volume manufacturing.

To ensure the 18A process is ready for mass production by 2025, Intel recently announced that it would prioritize resources for the 18A process, skipping the planned 20A node. The 18A process will feature Intel's RibbonFET fully wrapped gate transistor architecture and PowerVia backside power delivery technology, which were initially developed for the 20A node.

In late September, Intel showcased its Clearwater Forest Xeon chips at the Enterprise Tech Tour in Portland, Oregon. In October, Intel delivered Panther Lake CPU samples based on the 18A process to partners like Lenovo.

Despite the timeline targeting a mid-2025 mass production launch, the reported 10% yield rate raises serious doubts about Intel's ability to achieve large-scale production in time. If the yield rate remains this low, hitting production targets for 2025 could be extremely challenging.

These ongoing setbacks with Intel's 18A process and foundry business have led some to speculate that Intel's CEO, Pat Gelsinger, may face leadership changes. With the company's foundry business struggling, Intel could even consider divesting this segment in the future.