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Intel's contract manufacturing business does not meet Broadcom's standards.
Intel, it's fine if you fail on your own, but please don't involve Broadcom.
[September 4, 2024 Reuters] - U.S. semiconductor giant Intel (INTC.O), opens new tab, received an order from Broadcom (AVGO.O), opens new tab for its contract manufacturing (foundry) business. However, it has become clear from multiple sources that the ordered project did not meet Broadcom's standards.
This will be a blow to Intel's restructuring strategy.
Intel formed circuits on the silicon wafers received from Broadcom using its advanced manufacturing process, 18A. However, it was determined by Broadcom's inspection that transitioning to mass production is still difficult.
It is currently unclear whether Broadcom will cancel the order or not.
According to sources, Broadcom engineers have concerns about the feasibility of Intel's manufacturing process. They may be aware of issues with the number of defects on the wafers and the quality of the manufactured semiconductors.
A Broadcom spokesperson stated, "We are currently evaluating Intel Foundry's products and services and have not reached a conclusion yet."
Intel's public relations representative stated, "There is a great deal of industry interest in the 18A. We will not comment on individual customer interactions."
This will be a blow to Intel's restructuring strategy.
Intel formed circuits on the silicon wafers received from Broadcom using its advanced manufacturing process, 18A. However, it was determined by Broadcom's inspection that transitioning to mass production is still difficult.
It is currently unclear whether Broadcom will cancel the order or not.
According to sources, Broadcom engineers have concerns about the feasibility of Intel's manufacturing process. They may be aware of issues with the number of defects on the wafers and the quality of the manufactured semiconductors.
A Broadcom spokesperson stated, "We are currently evaluating Intel Foundry's products and services and have not reached a conclusion yet."
Intel's public relations representative stated, "There is a great deal of industry interest in the 18A. We will not comment on individual customer interactions."
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