Is Intel's Foundry Business in Trouble?

Core Viewpoint - Intel's 18A manufacturing process is reportedly facing challenges, but the company maintains that it is on track for high-volume production in the future [1][4]. Group 1: Manufacturing Readiness - Intel's 18A process is not yet ready for high-volume production, as indicated by flawed test wafers from Broadcom [1][2]. - Intel aims to have the 18A process ready for manufacturing by the end of the year, with high-volume production for external customers expected in 2025 [2]. Group 2: Performance Metrics - Intel CEO Pat Gelsinger reported that the defect density for the 18A process is below 0.4 defects per square centimeter, which is considered a good performance metric [3]. - The company has a dozen customers currently using the Intel 18A manufacturing toolkit and plans to launch its own products, including Panther Lake PC CPUs and Clearwater Forest server CPUs, next year [3]. Group 3: Customer Acquisition and Market Position - Intel needs to secure more customers for the 18A process, as it currently lacks a strong track record as a foundry [5]. - Microsoft has been secured as a customer for an undisclosed chip, but other customer announcements have been limited [5]. - The foundry business is expected to take time to generate significant external revenue as customers become more comfortable with Intel's capabilities [5].