Intel has announced that its new 18A-P process technology has entered the so-called ‘risk production’ phase, which is an early production stage used to test and optimise the process before launching large-scale production. This is an important step for the company as it seeks to rebuild its position both as a manufacturer of its own processors and as a provider of manufacturing services to other firms.
18A-P is an evolution of Intel’s 18A technology and is expected to offer around 9 per cent higher performance at the same power consumption, or up to 18 per cent lower power consumption whilst maintaining the same performance. The company also highlights improved thermal performance and greater flexibility in chip design. Importantly, the new process remains compatible with the 18A design rules, allowing customers to use existing designs without having to redesign them.
Intel at a pivotal moment
The decision to launch 18A-P has implications that go beyond purely technological considerations. For several years, the company has been investing billions of dollars in developing its foundry business, i.e. the production of chips for external customers. Until recently, the company’s management had suggested that the 18A process would be used primarily for its own products. Now, CEO Lip-Bu Tan is signalling ever more clearly the company’s readiness to offer this technology to external partners as well.
This shift in approach is driven, amongst other things, by the rapid growth in demand for computing power linked to the development of artificial intelligence. Intel reported that demand for processors from companies developing AI services was so high that even chips previously deemed unsellable were sold in the first quarter. The company forecasts second-quarter revenue of between $13.8bn and $14.8bn, exceeding analysts’ expectations.
For the semiconductor market, the start of production of the 18A-P process is a further sign that the company aims to regain its competitive edge against players such as TSMC. However, the coming months will show whether the company can translate this technological progress into a greater number of contracts and a sustained improvement in its financial results.
