[News] Intel 18A Yield Reportedly Just 10% at Risk Production, Casting Doubt on Panther Lake Plans

According to Reuters, Intel began risk production of its Panther Lake chips using the 18A process in April. However, sources cited in the report reveal that yields remain critically low—reportedly reaching only about 10% by this summer, up from just 5% late last year.

Intel has historically targeted yields above 50% before ramping production, as starting earlier could hurt profit margins. Additionally, the company typically doesn’t see substantial profits until yields reach around 70% to 80%, according to sources cited in the report.

As the report states, Intel claims its 18A process is on track for high-volume production of Panther Lake in 2025. However, the report warns that such low yields could make profitable production difficult in the near term. In addition, achieving a significant yield improvement ahead of Panther Lake’s scheduled fourth-quarter launch will be highly challenging. Without such progress, Intel may be forced to sell some chips at reduced margins—or even at a loss, as highlighted by the report.

Meanwhile, Intel CFO David Zinsner, as cited in the report, disputed the reported yield figures, saying they were better but declined to provide further details. Zinsner added that the company aims to reach yield levels sufficient for volume production of Panther Lake by year-end, though he acknowledged that margins still wouldn’t be accretive and further improvements are needed, the report notes.

For now, Intel remains partially reliant on TSMC to manufacture its in-house designed chips. As highlighted in the report, an Intel executive said in June that Nova Lake—the successor to Panther Lake—will also be partly produced by TSMC.

TSMC began accepting 2nm orders in April, with trial production yields reaching 60%, signaling the company’s readiness for full-scale manufacturing, as noted by Wccftech.

Samsung has also been making progress on its 2nm yields. According to South Korean outlet Business Post, the company is focused on improving yields to stabilize 2nm production. Early trial runs this year showed yields around 30%, which have reportedly recently exceeded 40%.

Read more

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(Photo credit: Intel)