Intel Foundry Achieves 'New Milestone': Officially Announces 'Enhanced 18A' Process Node Enters 'Risk Production' Phase

$Intel (INTC.US)$ Chip foundry has reached a “new milestone.”

According to MarketWatch, on June 16 local time, Intel announced that 18A-P—an enhanced version of its 18A process node—has officially entered the "risk production" phase.

In simple terms, "risk production" means the manufacturing process has matured sufficiently to begin initial volume production, though it has not yet reached the stage of large-scale commercial delivery. This phase typically lasts between six months and one year, during which Intel will test the real-world performance of 18A-P across various chip cores in preparation for full-scale mass production.

Dan Hutcheson, Vice President at market research firm TechInsights, stated: "Their willingness to enter risk production indicates they are ready to take on external customers."

How does 18A-P improve upon 18A?

18A-P is an upgraded variant within the 18A process family. Intel states that compared to 18A, 18A-P delivers higher performance for intensive AI computing workloads while also achieving improved power efficiency.

More importantly, 18A-P is fully design-compatible with 18A. This means customers do not need to redesign their chips from scratch and can continue development directly on 18A-P—significantly reducing their transition costs.

Notably, Intel initially did not plan to offer 18A-P to external customers. However, according to Ben Bajarin, CEO of Creative Strategies, the massive expansion of AI infrastructure has driven strong demand for computing power and chip manufacturing capacity, directly fueling market interest in 18A-P. At the same time, Intel has leveraged this variant to improve chip yields and refine its Process Design Kit (PDK).

Bajarin described this as a "significant leap forward," adding that Intel is now "in a position to acquire customers and bring them into Intel Foundry services."

Foundry Business: A "bleeding wound" losing $2.4 billion per quarter

This development has drawn significant attention primarily due to the financial pressures facing Intel's foundry business.

Bajarin stated bluntly that Intel's foundry division "has been a persistently loss-making business." Data supports this assessment: in the first quarter of this year, the division reported an operating loss of $2.4 billion.

Wall Street’s current bets on Intel’s path to profitability are largely focused on whether its next-generation 14A process node can attract external customers. However, progress on 18A-P offers an alternative route—Bajarin believes that if Intel successfully secures clients for this node, it would create substantial upside potential for both revenue and profit margins.

Dan Hutcheson also noted that, given chipmakers must currently respond to customer demands at an extremely rapid pace, the advancement of 18A-P represents a "critical milestone in Intel’s recovery." He added that Intel also holds a leading position in EMIB (Embedded Multi-die Interconnect Bridge) chip packaging technology.

Internal validation is complete; external customers are the next hurdle.

Prior to announcing that 18A-P has entered risk production, Intel had already established a foundation of internal validation.

According to Bajarin, earlier this year Intel launched its first consumer and commercial PC chips manufactured on the 18A node, which have already provided initial validation of its process and packaging capabilities. Dan Hutcheson also mentioned that Intel has already built internal products using the 18A-P technology.

However, internal validation and securing external customers are two different matters. The core objective of the "risk production" phase is to demonstrate through actual testing across diverse chip cores that this process is equally reliable for external clients. The next six to twelve months will determine whether 18A-P can truly become a new growth driver for Intel’s foundry business.

Editor/Jayden