Intel is testing making chips for NVIDIA and Broadcom
What's the story
NVIDIA and Broadcom are testing chip manufacturing with Intel, according to Reuters. The partnership is a major step toward assessing the possibility of large-scale manufacturing contracts with Intel. If successful, the tests could give a major boost to Intel's contract manufacturing business, which has been delayed and is still looking for a major chip designer client.
Others
AMD also considering Intel's manufacturing setup
Advanced Micro Devices (AMD) is also considering Intel's 18A manufacturing process for its needs. However, it is still not clear if AMD has sent test chips through the factory. An Intel representative said, "We don't comment on specific customers but continue to see strong interest and engagement on Intel 18A across our ecosystem."
Test details
Tests focus on Intel's 18A process
The tests being conducted by NVIDIA and Broadcom revolve around Intel's 18A process. It is a set of technologies and techniques developed over the years to produce advanced artificial intelligence processors and other complex chips. Based on the results of these tests, the companies will decide if they would go ahead with major manufacturing contracts with Intel.
Foundry issues
Intel's foundry business faces challenges
Despite the positive tests, there's no guarantee that Intel will get new business. Last year, a series of tests conducted by Broadcom didn't meet its executives' expectations. Also, there are potential delays in Intel's ability to deliver chips for some contract manufacturing customers relying on third-party intellectual property.
Future outlook
Intel's future plans and partnerships
Intel has also signed deals with Microsoft and Amazon to produce chips using the 18A process, but details about these agreements are scant. The timeline for potential contract manufacturing customers has been pushed back by another six months due to delays in qualifying essential IP for the 18A process. Despite these challenges, many chip designers are closely monitoring Intel's foundry progress, hoping they can soon utilize its manufacturing capabilities.