Quick overview

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Intel’s stock dropped after a report claimed that Nvidia Corp. stopped a test to produce advanced chips using Intel’s manufacturing process. According to Reuters, which cited two unnamed people with knowledge of the situation, Nvidia tested the so-called 18A process recently but decided not to proceed.

Requests for comment from Nvidia and Intel representatives were not immediately answered. Reuters was informed by an Intel representative that the company’s 18A manufacturing technologies are “progressing well.”. “Intel recently opened Fab 52, a new factory at its Ocotillo, Arizona, location, which is the first to use the 18A technique in mass production.

According to the company, it is the most advanced production technology created and used in the United States. In an effort to take on Taiwan Semiconductor Manufacturing Co., the industry leader, Intel is pushing to produce cutting-edge chips domestically. and reaffirm American dominance in the sector. NVIDIA decided to invest $5 billion in Intel after the US government acquired about 10% of the company.

The investment by the most valuable company and a major chip designer for the artificial intelligence boom was viewed as a boost for Intel, which has been struggling to control losses and catch up with rivals that have outperformed it in recent years. But Intel did not commit to producing Nvidia chips as part of the agreement.

18A is an attempt to resume producing Intel’s top products internally. According to Intel, the technology has two new features that are revolutionary for the sector. The first concerns transistors, the tiny switches that enable semiconductors to function. Tens of billions of transistors are crammed into a tiny space on modern chips. The ability to turn these transistors on and off becomes crucial for increasing chip efficiency and reducing energy consumption.