Intel has taken the next step in its chip manufacturing strategy. The company reports that 18A-P, an advanced version of the 18A manufacturing process, has reached the risk production phase. This brings the technology closer to large-scale production and commercial deployment.
Reuters notes that this is a significant milestone for Intel. In recent years, the company has been trying to regain ground lost in chip manufacturing while simultaneously making its foundry operations more attractive to external customers. By bringing 18A-P into production now, Intel aims to demonstrate that development is proceeding according to plan.
The new variant builds on the existing 18A process but , according to Intel, offers better performance and lower power consumption. At the same power consumption, 18A-P is said to deliver approximately 9 percent more performance. Those seeking to maintain the same performance can reduce power consumption by about 18 percent. Thermal characteristics have also reportedly been improved, which is important for increasingly powerful chips.
A key advantage for chip designers is that 18A-P remains fully compatible with the design rules of the original 18A process. As a result, existing designs, intellectual property, and development workflows can largely be reused without major modifications.
This development is also relevant for Intel Foundry, the division that manufactures chips for external customers. While Intel initially planned to use the process primarily for its own products, management now also sees opportunities to offer 18A technology to other chip designers. CEO Lip-Bu Tan now explicitly views the manufacturing process as a potential offering for external customers.
Strong demand from the AI market
At the same time, Intel is benefiting from sustained demand for artificial intelligence hardware. According to the company, demand for CPUs from AI service providers was so high in the first quarter that even inventory previously written off was ultimately sold.
That market demand is also reflected in the outlook for the current quarter. Intel expects revenue of between $13.8 and $14.8 billion. This forecast exceeds analysts’ average expectation, which, according to market research firm LSEG, was approximately $13.1 billion.
With the progress of 18A-P, Intel is seeking not only to narrow its technological gap with competitors but also to build confidence among potential foundry customers looking for alternatives to established manufacturing partners.