Intel first unveiled its Panther Lake CPU made with the 18A process last year, and entering risk production back in April. But it looks like the blue chip brand may be struggling on getting the mass production process right. Sources tell Reuters that the yield for such chips remain low, which may affect profitability in the near future.
The report unfortunately does not provide a figure for the state of the current yield. Instead, it mentions that it was about five percent as of late last year, rising to 10% “this summer”, which ends late next month. The bulk of profit comes after chip yields hit between 70% and 80%. Intel is also noted to be aiming for higher than 50% yield before ramping up production.
Despite this, the company says “Panther Lake is ‘fully on track'”, noting that yields “start off low and improve over time”. In a separate statement to Engadget, the company says “we feel very good about our trajectory on Intel 18A, and it will be the foundation of multiple generations of client and server products in the coming years”.
Intel previously told investors that if it didn’t land deals for the successor 14A process, it may exit chip manufacturing entirely. With that in mind, there’s a lot on the 18A line. Previously, new company CEO Lip-Bu Tan said the company will consolidate assembly and test operations in Malaysia and Vietnam.
