Broadcom's trial runs using Intel's 18A fabrication technology reportedly did not meet expected standards. This disappointment heightens the pressure on Intel's recovery plan, which aims to surpass TSMC in manufacturing innovations. Despite these setbacks, the situation remains manageable. Broadcom's testing involved the production of wafers reflecting typical product patterns, but the results prompted concerns from its engineers about the viability of scaling to high-volume production.
Intel’s CEO, Pat Gelsinger, recently announced a defect density rate of 0.4 defects per square centimeter for the 18A process, which is considered healthy given the development phase. In comparison, TSMC's earlier technologies displayed defect densities lower than Intel's at similar stages, contributing to concerns about Intel's competitiveness. TSMC's N3 technology initially had a higher defect density but showed improvements over time, raising questions about Intel's trajectory.
Broadcom has not yet completed its evaluation of Intel’s 18A technology, indicating ongoing assessment. The relationship with Broadcom is critical for Intel, as the latter is a top provider of chips for telecommunications and advanced AI processors. Serving Broadcom's demands effectively is essential for Intel's aspirations in the foundry market. Broadcom's recent innovations, including the world's largest processor, emphasize the magnitude of expectations Intel must meet to retain such vital clients.
