Intel’s 18A Process Stumbles with 10% Yield Rates, Casting Doubt on Foundry’s Future

Intel’s ambitious 18A process, touted as a game-changer for Intel Foundry Services (IFS), has hit a significant snag. Reports from Korean media outlet Chosun suggest that yield rates for the 18A process are languishing at a mere 10%, rendering mass production virtually impossible. This revelation has sent shockwaves through the semiconductor industry and raised serious questions about Intel's future in the foundry business.

Broadcom Backs Out, Intel Faces Critical Challenges

Intel Foundry Services was pegged as a cornerstone of Intel’s revival strategy, but it appears the division is struggling to meet market demands. Broadcom, once a major IFS customer, reportedly canceled its 18A orders, citing dissatisfaction with the process. This comes as a major blow to Intel, further compounded by fierce competition from TSMC, whose N2 (2nm) process reportedly outperforms Intel's 18A due to higher SRAM density—a critical factor in node efficiency and performance.

Leadership Shakeup and the Fallout

The disappointing yield rates are rumored to have played a pivotal role in the recent departure of Intel’s CEO, Pat Gelsinger. Sources indicate that Intel's inability to secure larger government subsidies for its foundry operations, coupled with Broadcom’s withdrawal, led to mounting pressure on Gelsinger, culminating in his exit.

With Gelsinger gone, industry insiders speculate that Intel may pivot away from its foundry ambitions, focusing instead on its core manufacturing and product divisions. An IFS sell-off or merger could very well be on the horizon as the company struggles to navigate its current challenges.

While Intel grapples with its setbacks, rival TSMC continues to solidify its dominance. Despite Intel’s claims of technological superiority, TSMC’s proven track record and market-ready solutions make it the preferred choice for customers like Broadcom. Intel’s vision of competing in the high-stakes foundry market now seems increasingly untenable.

The question remains: can Intel recover from these missteps, or will the 18A process mark a turning point toward a diminished role in the semiconductor industry?

What do you think about Intel’s ongoing foundry struggles? Should they pivot to focus on their core strengths, or is there still hope for the 18A process? Let us know in the comments below!