Reuters news report claimsThe 18A process technology, which Intel has high hopes for in order to reverse the decline in chip manufacturing, is still facing problems of low yield and high defect rate. However, Intel is still preparing for the launch of the next generation of laptop processors later this year.Panther LakeWe remain optimistic about mass production.
This isn't the first time Intel has been plagued by rumors of poor performance with its 18A process. Last year, reports surfaced that Broadcom was dissatisfied with Intel's trial production results, leading to rumors of yield issues with Intel's 18A process. However, Intel subsequently emphasized that its 18A process is performing as expected and that Panther Lake is on track to enter mass production as scheduled.
Meanwhile, Intel was stillPublicly statedThe performance and yield trend of the 18A process are sufficient to support the smooth launch of new products and further strengthen its position in the notebook market.
Intel typically expands production when its chip process yield reaches 50% usable, and generates significant production profits with yields in the 70% to 80% range. Previously published data indicates that the yield rate for Panther Lake, produced using the 18A process, is only around 5%, significantly lower than the 10% projected this summer. While the latest data has not been released, the source obtained by Reuters still describes the progress as "extremely low."
However, Intel expressed satisfaction with the progress of the 18A process in a subsequent statement, emphasizing that this process will be the technological foundation for multiple generations of Intel's future client and server products. It also stated that "Panther Lake" will be an important product for Intel and its partners, and reiterated that the plan to release it as scheduled this year remains unchanged.
Intel CFO David Zinsner also mentioned in an interview in July that the yield rate of the 7A process is actually better than rumored, and explained that low yield rates in the early stages of chip production are normal and will gradually improve over time.
Intel's 18A process not only involves an innovation in process architecture but also introduces a new generation of transistor design, making it a high-risk, high-reward gamble. Intel hopes to lay the foundation for the subsequent 14A process and attract more foundry orders. However, if the 18A process fails to successfully launch, Intel's prospects for independent manufacturing will be further shaken.
In fact, Intel warned investors in July that if there are insufficient 7A orders in the future, Intel may be forced to withdraw from the chip manufacturing field.
Faced with challenges, Intel has recently launched a drastic organizational restructuring and is expected to lay off another 20% of its employees by the end of this year. Prior to this, it had already laid off 2024 employees from mid-2025 to mid-2.New CEO Chen LiwuWe are accelerating the pace of internal reforms, aiming to create products that meet market customer needs from the outset, while striving to improve process technology.
Overall, the success or failure of the 18A process not only determines whether Intel can catch up with TSMC, but also affects the long-term survival of its foundry business. The actual mass production progress of "Panther Lake" in the next few months will obviously become a key indicator to test the success of this "big gamble".
