Aug 06, 2025 12:55:00

Intel is struggling to manufacture its 18A process, with only 10% meeting specifications by summer 2025

Intel is planning to begin mass production of semiconductors using the 18A (1.8nm) process by the end of 2025,

and succeeded in initial production of the 18A process in March 2025. However, according to a person familiar with Intel's manufacturing process who spoke to Reuters, the chips produced using the 18A process are barely of a quality good enough to be delivered to customers, and it has become clear that the company is struggling to produce practical chips.

Exclusive: Intel struggles with key manufacturing process for next PC chip, sources say | Reuters
https://www.reuters.com/world/asia-pacific/intel-struggles-with-key-manufacturing-process-next-pc-chip-sources-say-2025-08-05/

Report: Intel struggles with new 18A process as it cuts workers and cancels projects - Ars Technica
https://arstechnica.com/gadgets/2025/08/report-intel-struggles-to-ramp-up-production-on-new-18a-manufacturing-process/

Intel's 18A process is particularly important for Intel as it seeks to make a comeback in the field of advanced chips, not just by miniaturizing the process but also by incorporating two cutting-edge technologies , RibbonFET and PowerVia. However, while development of 18A was announced as 'progressing smoothly' in August 2024, the roadmap announced in 2021 called for 'completion by 2024,' but initial production of 18A was delayed until March 2025.

Intel begins initial production of 18A (1.8nm) process semiconductors - GIGAZINE

Furthermore, sources have revealed that Intel is struggling to produce usable chips at 18A. In manufacturing, 'yield' refers to the ratio of the number of products actually produced to the expected amount of production (from the raw materials used). In semiconductor manufacturing, yield is the percentage of properly functioning chips produced from a single silicon wafer. Therefore, if yield does not increase, problems will arise in production capacity and profitability.

According to two people briefed on Intel's test data from around the end of 2024, Intel aims for a yield of over 50% before expanding production, and will not be able to earn the majority of its profits until it reaches 70% to 80%. However, as of summer 2025, the yield for the 18A chip will be around 10%, up from around 5% at the end of 2024, but still quite low. However, it is possible that Intel could claim a higher figure if it included chips that did not meet all performance targets, and it is important to note that accurate yield calculations are not currently possible.

In a statement released on July 30, 2025, Intel said that ' Panther Lake chips using the 18A manufacturing process are progressing well,' but did not specify what yield it is currently targeting to increase chip profitability.

In its second-quarter 2025 financial results, Intel also announced that it would launch Panther Lake chips in the second half of 2025, with more models to follow in 2026. Technology media Ars Technica described this as 'Intel's usual PR strategy of insisting that things are going well internally and that bugs are being ironed out, expressing confidence in its roadmap, and continuing to move forward with some leeway regarding actual product release dates.'

Intel Chief Financial Officer David Zinsner told Reuters on July 24, 2025, 'Yields generally start low and improve over time. We expect yields to improve every month and reach a yield level appropriate for Panther Lake production levels by the end of 2025. Even at this yield level, we cannot guarantee profitability, so we still need to improve.' However, he did not comment on current yields, and Intel declined to provide data.