Nvidia tested whether it could produce its chips using Intel's next-generation semiconductor process, 18A, but has recently halted further progress, according to reports. Reuters, citing two people familiar with the matter, reported on the 24th that Nvidia suspended testing after exploring the feasibility of 18A-based manufacturing. Nvidia did not respond to a request for comment.
The news is seen as a burden for Intel, which is trying to grow its foundry business by securing external customers. Reuters reported that Intel's manufacturing organization is also struggling to produce its own chips at sufficient quality. Intel is positioning 18A as a pillar of its advanced processes and sees it as the first gate in the competition for external orders.
Intel said "18A technology is progressing smoothly," and added that there is "strong interest" in the next-generation 14A process as well. Intel said 14A is expected to produce more powerful and efficient chips.
Nvidia invested $5 billion in Intel in Sep. but did not promise to manufacture at Intel's plants. Intel CEO Lip-Bu Tan also said at the time, "We are focused on collaboration for now." The market is watching how Nvidia's moves will be read as a signal for Intel's ability to secure major customers. Some in the industry say 18A's performance could be a watershed in Intel's transition to a foundry.
Meanwhile, immediately after the report, Intel's share price fell 3.6% intraday before paring some losses.