Tag: Intel 18A

  • Intel Panther Lake CPU Profitability Hit by Low 18A Yields

    Intel Panther Lake CPU Profitability Hit by Low 18A Yields

    Key Takeaways

    1. Intel’s Panther Lake laptop processors have no confirmed launch date, with speculation ranging from early 2026 to sooner.
    2. Intel is facing yield challenges, potentially selling chips at lower profit margins or losses due to poor production yields.
    3. The die size of Panther Lake chips is approximately 274.2 mm², larger than the previous Lunar Lake size of 220 mm².
    4. Production hurdles include yields reported at only 10%, significantly below the desired 50% for break-even, leading to high defect rates.
    5. Intel’s focus is on producing Panther Lake and Clearwater Forest chips while preparing for future Nova Lake desktop chips using TSMC’s advanced 2 nm node.

    Despite managing to power on, Intel’s new laptop processors that are built on the Panther Lake design still do not have a clear launch date. Some believe it could happen as soon as early 2026, while others think it might be sooner. However, Intel has remained quiet about the situation, making it difficult to know for sure. A recent report is trying to clarify what’s happening with Panther Lake.

    Yield Challenges

    Insiders informed Reuters that “Intel may have to sell some chips at a lower profit margin or at a loss,” suggesting that the situation with Intel 18A’s yield has not improved much. Yield figures are not very informative without knowing the die size, but a previous leak indicated that the die size would be around 274.2 mm², which is slightly larger than the Lunar Lake’s size of approximately 220 mm².

    Production Hurdles

    The report also mentions that Intel was hoping to achieve 50% yields at some point to break even, but if they are selling chips at a loss, this clearly hasn’t been achieved. Allegedly, “Panther Lake chips had about three times too many defects for Intel to start high-volume production.” Yields were reported to be at 10%, a claim that was also made in an earlier report, which Intel strongly refuted.

    Future Prospects

    With Intel 18A effectively limited to new external clients, its main goal is to successfully produce enough Panther Lake and Clearwater Forest chips. The upcoming Nova Lake desktop chips will utilize TSMC’s advanced 2 nm node for the CPU tile and various suppliers for other parts. This will also prepare the way for the next-generation 18A-P and the future 14A, marking Intel’s significant return to the foundry sector.

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  • Intel Announces Amazon as New Customer for 18A Node Technology

    Intel Announces Amazon as New Customer for 18A Node Technology

    In a recent announcement, Intel has revealed it will produce chips for Amazon Web Services (AWS) using its advanced 18A manufacturing process. Additionally, the company will create specialized Intel Xeon CPUs on the Intel 3 node. While it is not clear which specific chip will be made using the 18A process, it is expected to be custom hardware developed for Amazon. Both Intel and Amazon are planning to establish operations in Ohio, where Amazon intends to invest an extra $7.8 billion, building on the $10.3 billion it has already invested since 2015.

    Collaboration Highlights

    Matt Garman, CEO of AWS, stated, "By co-developing next-generation AI fabric chips on Intel 18A, we continue our long-standing collaboration, which began in 2006 when we introduced the first Amazon EC2 instance featuring their technology. Our ongoing partnership enables us to provide our shared customers with the capacity to manage any workload and unlock new AI possibilities."

    This news follows Intel’s recent acquisition of a $3 billion contract from the U.S. Department of Defense for the production of military-grade semiconductors. The 18A process, which is a significant advancement in the industry, offers backside power delivery, enhancing chip performance.

    Future Prospects

    Although Broadcom has yet to express enthusiasm for the Intel 18A technology, it has shown improvement and is likely to attract more Intel Foundry clients, potentially including Arm, in the near future. Intel’s internal Panther Lake and Clearwater Forest CPUs have already been successfully tested on this node, with production yields reportedly on the rise after initial challenges.

    Intel’s partnerships with AWS and the Department of Defense are crucial for the company, especially in light of falling stock prices, controversies surrounding CPU performance, and a missed $30 billion opportunity related to chip manufacturing for the PlayStation 6. The increased adoption of the 18A process will also assist Intel in building an intellectual property library and ecosystem around its inaugural public node, encouraging other companies to turn to Intel Foundry for their chip production needs.

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