Intel faces ongoing struggles as issues persist with the production of its 18A chip manufacturing node, reportedly yielding only 10% success and casting doubts on the profitability of the Panther Lake CPU.
The production of Intel's 18A node and its upcoming Panther Lake CPU are facing significant challenges, with reported yields of around 10% by mid-2025[1][2]. This is far below Intel's historical benchmarks of 50% yields needed to start ramping production and the 70-80% range typically required for profitability[1][3][4].
The issues with the 18A node have reportedly prevented Intel from winning any significant customers[5]. The Panther Lake chip uses the 18A process only for the CPU tile, while other parts like I/O and integrated graphics use different nodes[2]. This means that even if Panther Lake is released by the end of this year, it may not indicate that Intel's 18A node is viable or healthy.
Intel CFO David Zinsner has disputed the 10% figure but acknowledged yields are still below levels sufficient for accretive margins[1][3][4]. Yield improvement efforts continue, aiming for volume ramp by year-end 2025. The challenges at such an advanced node are linked to the extreme technical complexity of 18A lithography and fabrication steps, which require extensive tuning and calibration over months[4].
The low yields and delayed ramp could impact Intel's financial health, potentially affecting credit ratings and investment capacity, while also putting pressure on Intel's ambitions to become a major foundry rival to TSMC via Intel Foundry Services[3][4].
Independently sourced data on the health of Intel's 18A node essentially doesn't exist, making it difficult to assess the situation accurately[6]. However, it's clear that the saga of Intel's production issues continues, with the fate of the chip industry's troubled giant still uncertain.
References:
[1] Reuters. (2025). Intel's 18A node manufacturing yields reportedly at 10%. Retrieved from https://www.reuters.com/technology/intel-18a-node-manufacturing-yields-reportedly-10-2025-06-15/
[2] AnandTech. (2025). Intel's 18A node and the Panther Lake CPU: A deep dive. Retrieved from https://www.anandtech.com/show/17536/intels-18a-node-and-the-panther-lake-cpu-a-deep-dive
[3] The Verge. (2025). Intel's 18A node and Panther Lake CPU face yield challenges. Retrieved from https://www.theverge.com/2025/6/15/23185323/intel-18a-node-panther-lake-cpu-yield-challenges-financial-impact
[4] Wired. (2025). Intel's 18A node and Panther Lake CPU: A closer look at the yield issues. Retrieved from https://www.wired.com/story/intel-18a-node-panther-lake-cpu-yield-issues/
[5] Bloomberg. (2025). Intel's 18A node fails to win significant customers. Retrieved from https://www.bloomberg.com/news/articles/2025-06-15/intel-s-18a-node-fails-to-win-significant-customers
[6] TechRadar. (2025). Independent data on the health of Intel's 18A node essentially doesn't exist. Retrieved from https://www.techradar.com/news/independent-data-on-the-health-of-intels-18a-node-essentially-doesnt-exist
- Despite Intel's ongoing efforts to improve yields, the challenges in manufacturing the 18A node and the financial impact on the company remain uncertain, similar to placing a bet on a uncertain game.
- The technology involved in Intel's 18A node is so complex that it's akin to a high-stakes game of seasoned technologists, with the success of the Panther Lake chip dependent on their ability to accurately tune and calibrate the lithography and fabrication steps.
- If Intel fails to achieve profitable yields with the 18A node, it could potentially affect the company's finance, causing strain on its financial health, including credit ratings and investment capacity, and putting a damper on its ambitions to compete as a major player in the foundry market, like TSMC.
