Nvidia and Broadcom test Intel manufacturing: Reuters
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The news: Chip designers Nvidia and Broadcom are carrying out manufacturing tests with Intel, according to sources cited by Reuters.
The numbers: On the back of the news, shares in Intel climbed 5.9% to USD25.14 ($40.34) in premarket trading on Monday.
The context: Pushing ahead with testing suggests that the companies are getting closer to deciding whether to agree to manufacturing contracts with Intel. Should Intel win contracts from the two companies, it would see a huge revenue windfall that could help spell a turnaround for the US company that has yet to announce a prominent partnership with a chip designer.
Last week Intel said its USD28 billion plan to build chip fabrication plants in Ohio is facing further delays, with its first factory now likely to be completed by 2030.
Sources told Reuters that the tests are using Intel’s 18A process, which can produce advanced artificial intelligence processors as well as other complex chips. Intel’s 18A competes with similar technology from Taiwan Semiconductor Manufacturing Co.
The testing, which can last months, is aimed at determining the behaviour and capabilities of 18A, rather than on complete chip designs.
Intel has said it has agreed manufacturing deals with Microsoft and Amazon for its 18A chips, but details on volumes and product specifics remain unknown.
In February the Wall Street Journal reported that TSMC and Broadcom were both weighing up a takeover of Intel businesses, a move which would divide the American chipmaker’s operations.
The source: Reuters
