Is Intel's Foundry Business in Trouble?

An exclusive report from Reuters on Wednesday appeared to paint a picture of turmoil at 's (NASDAQ: INTC) nascent foundry. According to multiple sources, test wafers for semiconductor giant Broadcom that had run through Intel's upcoming Intel 18A manufacturing process came back flawed enough for Broadcom to conclude that Intel 18A was not ready for high-volume production.

The Intel 18A process isn't ready for high-volume production because... it's not ready for high-volume production. Intel's timeline is to have the process, meant to beat foundry leader TSMC technologically, ready for manufacturing by the end of the year and ready for high-volume manufacturing for external customers a bit later in 2025.

It shouldn't be a surprise that a manufacturing process that's not ready for mass production is producing subpar wafers. In response to the Reuters piece, an Intel spokesperson said that Intel 18A is healthy, yielding well, and on track for high-volume manufacturing next year. A Broadcom spokesperson added that the company's evaluation of Intel 18A has not yet been concluded.

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Source Fool.com