Intel announced that Nvidia has stopped testing its 18A advanced manufacturing process, a key node in Intel’s plan to compete with TSMC in the foundry market. The pause follows Nvidia’s $5 billion investment in Intel in September 2025 and its joint product‑development agreements, underscoring the importance of the 18A node to both companies’ AI and data‑center ambitions.
Nvidia’s decision to halt testing signals that the 18A process may not yet meet the yield and performance targets required by a leading AI chip designer. Intel’s spokesperson said the 18A technologies are “progressing well,” but the pause indicates that the process still faces significant yield challenges that could delay mass production and customer adoption.
Intel’s foundry business has a break‑even target of 2027, a goal that hinges on the successful scaling of the 18A node. Yield issues could push the break‑even date further out, increase capital expenditures, and reduce the margin profile of the foundry segment. The pause also raises questions about Intel’s ability to attract high‑profile customers, potentially weakening its competitive position against TSMC and other pure‑play foundries.
The event highlights a broader pattern of yield challenges for Intel’s advanced nodes. Earlier reports noted that 18A yields were significantly lower than industry standards and would not reach profitable levels until 2026 or 2027. Nvidia’s pause reflects the high expectations that a partner with a $5 billion stake has for the technology’s readiness.
Intel’s CFO David Zinsner had previously stated that yields were improving but not yet at levels for accretive margins. The current halt suggests that the improvement trajectory may be slower than anticipated, adding uncertainty to Intel’s financial outlook for the foundry business.
The pause also underscores the strategic risk of Intel’s IDM 2.0 model, which relies on external customers to drive scale. If Nvidia’s testing remains suspended, Intel may need to accelerate internal product development or seek alternative partners to meet its 18A deployment schedule.
Overall, the halt in Nvidia’s testing of the 18A process represents a significant operational setback for Intel’s foundry ambitions, potentially delaying its break‑even target and weakening its competitive stance in the high‑performance chip market.
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