A South Korean media outlet, Chosun, reports that Intel's 18A node yields are significantly lower than expected, around 10%. This raises concerns about the viability of the node for mass production and potentially links to the recent resignation of CEO Pat Gelsinger.
These low yields mean that 9 out of 10 chips produced are defective, a critical issue for profitability. This echoes similar problems faced by Samsung Foundry with its second-generation 3nm node, although their yields are reportedly around 20%.
Despite featuring advanced technologies like RibbonFET and Backside Power Delivery, the 18A node's low yields are disappointing. Intel has until 2025, the expected start of mass production, to address the issue.
The 18A node is crucial for several upcoming Intel products, including Clearwater Forest server chips, Panther Lake laptop CPUs, a custom AI product for AWS, and military hardware. While these projects should sustain Intel Foundry in the near term, the long-term outlook remains uncertain. Intel might even consider using TSMC's N2 node for its Nova Lake CPUs if 18A yields don't improve.
