Intel 1.8nm Process, Low Likelihood of Mass Production by 2026

"Apple, Qualcomm, and Others to Exclude Intel 18A Process"

A report has emerged indicating that Intel's 1.8-nanometer (18A) process, which was targeted for mass production by the end of this year, is unlikely to be realized even by 2026.

On the 29th (local time), sources cited by major foreign media stated that Intel's current suppliers have not yet received the necessary data and tools from Intel to design and simulate chips suitable for the 18A process technology, and they also do not have access to Intel's factories. They conveyed that the possibility of Intel mass-producing semiconductor chips using the 18A process by 2026 is very low. Additionally, some potential customers such as Apple and Qualcomm have decided not to use Intel's 18A process for technical reasons.

[Image source=Reuters Yonhap News]

The 18A process is a semiconductor process that Intel ambitiously pursued when it declared its re-entry into the foundry (semiconductor contract manufacturing) business in 2021. Earlier, at the 'IFS (Intel Foundry Services) Direct Connect' event in February, Intel announced that the mass production timeline for the 1.8 nm (1 nm = one billionth of a meter) process, originally planned for 2025, had been moved up to the end of this year. Currently, only TSMC and Samsung Electronics are capable of mass-producing foundry processes below 5 nm, and since 1.8 nm is more advanced than the 3 nm process currently in mass production by these two companies, this announcement surprised the market at the time.

However, last month, reports surfaced that Broadcom, a semiconductor design company, tested Intel's 18A process and concluded that it is not suitable for mass production, casting a shadow over Intel's original year-end mass production goal.

Furthermore, foreign media reported that Intel CEO Pat Gelsinger was found to have exaggerated the sales targets of the AI chip 'Gaudi,' which was developed in-house. Early last year, Intel internally expected Gaudi chip sales to reach up to $500 million (approximately 692.2 billion KRW), but in the July earnings announcement that year, CEO Gelsinger told investors that "AI accelerator sales have exceeded $1 billion (approximately 1.3 trillion KRW), and Gaudi is driving this."

Sources explained that at the time the $1 billion sales target was presented, Intel had not secured sufficient supply from TSMC, and Intel included other chips unrelated to AI chips to meet the sales target. Previously, Intel developed its own chip 'Gaudi' targeting the AI chip market dominated by Nvidia, produced it at Taiwan's TSMC, and has currently released up to Gaudi 3.