Intel 18A Mass Production Reportedly Delayed Until 2026

Recent reports from South Korean media highlight growing uncertainty around Intel's highly anticipated 18A semiconductor process. The first chip based on this cutting-edge technology, code-named Panther Lake, is now rumored to have its large-scale production postponed from late 2025 to the first quarter of 2026 due to yield issues.

Intel initially aimed to ramp up 18A production by the end of 2025, targeting a yield rate above 50%. Although some rumors suggest yields have reached between 55% and 65%, industry experts note that a sustainable and profitable chip production typically requires yields closer to 70%-80%.

According to a Reuters report on August 8, insiders familiar with Intel's manufacturing reveal that current yield levels may still fall short of expectations. Launching Panther Lake in the fourth quarter as planned could present significant challenges for mass production. If yield improvements don't materialize, Intel might face tough decisions, potentially releasing chips at lower profit margins or even at a loss.

The insiders also shared that since late last year, testing of Panther Lake chips made on the 18A process showed only a small portion meet quality standards for customers—further signaling yield concerns.

South Korean outlet Hankyung adds that these yield issues are likely behind Intel's decision to push back large-scale production of 18A technology to early 2026, as the current profitability thresholds appear difficult to meet.

Intel is currently navigating multiple pressures. Financially, the company continues to face losses, prompting CEO Lip-Bu Tan to emphasize cost reduction, efficiency improvements, and focusing on core product lines to boost shareholder value. Meanwhile, Intel's governance has drawn political scrutiny in the U.S., with calls for leadership changes adding to internal challenges.

For Gelsinger, the successful rollout of the 18A process is crucial to demonstrating Intel's competitive edge and technological leadership. This means Intel is unlikely to rush mass production without reaching a solid yield level. As a result, the debut of Panther Lake on the 18A node is expected to be delayed into early 2026. The success of this product will be key not only for Intel's roadmap but also for attracting broader adoption of the 18A technology by other chip designers.