Broadcom's Testing of Intel 18A Node Signals Disappointment, Still Not Ready for High-Volume Production
According to a recent Reuters report, Intel's 18A node doesn't seem to be production-ready. As the sources indicate, Broadcom has been reportedly testing Intel's 18A node on its internal company designs, which include an extensive range of products from AI accelerators to networking switches. However, as Broadcom received the initial production run from Intel, the 18A node seems to be in a worse state than initially expected. After testing the wafers and powering them on, Broadcom reportedly concluded that the 18A process is not yet ready for high-volume production. With Broadcom's comments reflecting high-volume production, it signals that the 18A node is not producing a decent yield that would satisfy external customers.
While this is not a good sign of Intel's Fundry contract business development, it shows that the node is presumably in a good state in terms of power/performance. Intel's CEO Pat Gelsinger confirmed that 18A is now at 0.4 d0 defect density, and it is now a "healthy process." However, alternatives exist at TSMC, which proves to be a very challenging competitor to take on, as its N7 and N5 nodes had a defect density of 0.33 during development and 0.1 defect density during high-volume production. This leads to better yields and lower costs for the contracting party, resulting in higher profits. Ultimately, it is up to Intel to improve its production process further to satisfy customers. Gelsinger wants to see Intel Foundry as "manufacturing ready" by the end of the year, and we can see the first designs in 2025 reach volume production. There are still a few more months to improve the node, and we expect to see changes implemented by the end of the year.
While this is not a good sign of Intel's Fundry contract business development, it shows that the node is presumably in a good state in terms of power/performance. Intel's CEO Pat Gelsinger confirmed that 18A is now at 0.4 d0 defect density, and it is now a "healthy process." However, alternatives exist at TSMC, which proves to be a very challenging competitor to take on, as its N7 and N5 nodes had a defect density of 0.33 during development and 0.1 defect density during high-volume production. This leads to better yields and lower costs for the contracting party, resulting in higher profits. Ultimately, it is up to Intel to improve its production process further to satisfy customers. Gelsinger wants to see Intel Foundry as "manufacturing ready" by the end of the year, and we can see the first designs in 2025 reach volume production. There are still a few more months to improve the node, and we expect to see changes implemented by the end of the year.