Intel’s Foundry Business Faces Challenges
Intel’s plan to turn around its business is heavily dependent on the success of its new foundry initiative and its 18A chip manufacturing process, launched recently. However, the company has not yet secured a significant customer for this advanced node, which operates at 1.8 nm. Despite a rise in its stock value of over 100% in the last six months, Intel faces potential setbacks, especially after Nvidia decided not to move forward with using Intel’s 18A process despite investing $5 billion in the company in September.
The lack of external customers for the 18A process could undermine Intel’s ambitions to compete with industry leaders like TSMC and Samsung. Nvidia’s rejection follows various tests of Intel’s 18A, raising concerns among investors about the company’s manufacturing capabilities. As of now, Intel must secure partnerships to validate its foundry business and demonstrate the viability of its technology, a critical factor for sustaining investor confidence.
