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SAN JOSE (Reuters) – Intel announced on Tuesday that a number of its contract manufacturing clients are set to develop test chips as part of a cutting-edge manufacturing process that remains in the works.
During the company’s Direct Connect conference, Intel revealed heightened interest in its contract chip business, often referred to as foundry services. While the establishment of this foundry unit has faced various challenges, the long-term objective is to compete directly with TSMC.
Since assuming the CEO role in March, Lip-Bu Tan has expressed a commitment to redefining Intel’s direction and, in his inaugural public address, urged clients to provide “brutally honest” feedback. Revamping the foundry operations is a significant aspect of his strategic vision for the company.
At the San Jose event, Tan shared that many industry players have inquired about Intel’s dedication to the foundry business following his leadership transition. “The answer is ‘yes’,” he affirmed. “I’m committed to making the Intel foundry successful, and I know there are areas we need to improve.”
The advanced manufacturing process, designated as 14A, is expected to introduce a novel type of cutting-edge chipmaking tool known as a high-NA EUV machine. Additionally, 14A will incorporate innovative power delivery technology.
Intel also disclosed that it has provided an initial version of the digital design kit, essential for converting a chip design into a functional silicon product.
Typically, semiconductor firms create test chips to assess new manufacturing processes before advancing to a full-scale design, which entails significantly higher costs and risks. Reports indicate that companies like Broadcom and Nvidia have conducted testing for Intel’s current advanced manufacturing process, known as 18A.
Intel reaffirmed its plans to ramp up the 18A process to high-volume production within this year. The initial production of 18A chips will take place at the company’s research and development facility near Hillsboro, Oregon, with factories in Arizona scaling up production soon after.
Following the keynote presentations at the foundry event on Tuesday morning, Intel’s shares saw a modest increase of nearly 1% during regular trading.
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