Intel Gains Traction With 18A Process As Nvidia, Broadcom Consider Manufacturing Contracts

According to a Reuters report, Nvidia Corp NVDA and Broadcom Inc AVGO are running manufacturing tests with Intel Corp’s INTC 18A process, signifying potential upside for the U.S. struggling chipmaker.

Intel’s 18A process can make advanced artificial intelligence processors and other complex chips and competes with Taiwan Semiconductor Manufacturing Co TSM technology, which dominates the global chip market, Reuters cited unnamed sources familiar with the matter. Intel stock gained Monday after the report.

Also Read: Intel Delays $28 Billion Ohio Chip Plant Again, Pushing Opening to 2030 Amid Financial Struggles

The tests reflect the companies’ exploration of plans to commit hundreds of millions of dollars worth of manufacturing contracts to Intel.

Apparently, Advanced Micro Devices Inc. AMD is also considering using Intel’s 18A manufacturing process for its needs.

An Intel spokesperson told Reuters that Intel enjoyed higher interest and engagement on Intel 18A.

Intel’s struggling business has attracted the attention of the U.S. administration. The Donald Trump administration recently met with Taiwan Semiconductor chief C.C. Wei and discussed the Taiwanese contract chipmaker’s acquisition of a majority stake in a joint venture in Intel’s factory unit.

Meanwhile, Intel said it bagged deals with Microsoft Corp MSFT and Amazon.com Inc AMZN to produce chips on 18A.

Intel stock plunged 48% in the last 12 months as it failed to capitalize on the AI frenzy, which cost its CEO Pat Gelsinger positions.

The chipmaker had named CFO David Zinsner and general manager of Intel’s Client Computing Group Michelle Johnston Holthaus as interim co-CEOs while the board hunted for a new CEO.

Price Action: INTC stock is up 0.55% at $23.86 at the last check on Monday.

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