Intel announced it has begun production of its most advanced chip manufacturing process, 18A-P, bringing it a step closer to a potential deal for Apple devices.
The company revealed the new manufacturing node at the VLSI Symposium held in Honolulu, Hawaii. Naga Chandrasekaran, head of Intel’s foundry division, said this demonstrates the company’s long-term commitment to advanced manufacturing technologies.
Entered risk production phase
The 18A-P process was first announced last year. According to the company, it is currently in the "risk production" phase. This stage refers to an early production period where data is collected to confirm the process can meet customer requirements before final approval.
After years of error margins and low yields, Intel placed 18A at the center of its transformation plan. With this production line, the company aims to become a competitive chip manufacturer not only for its own products but also for external customers.
Although the 18A process was transferred to computer chips in January, Intel has yet to secure a major external customer. Analysts suggest 18A-P could serve as a stronger test ground to showcase the company’s capabilities.
Claims on performance and power consumption
Intel states that 18A-P offers 9% higher performance or 18% lower power consumption compared to 18A. The company also noted that this process is compatible with the 18A chips that have been in serial production at its Arizona facilities since December.
Intel further revealed the new node has at least 20% higher heat resistance. This feature is important as it indicates how the manufacturing process is positioned in terms of both yield and durability.
Yield rate will be decisive
Semiconductor analyst Neil Shah said the key metric here is the yield rate. According to Shah, achieving over 90% yield within the first month could increase Intel’s chances of attracting several new customers.
On Wall Street, Intel shares have risen this year amid strong recovery expectations. After an 84% increase in 2025, the stock price has surged over 200% this year.
One major factor behind the rise was the U.S. government acquiring a 10% stake in Intel in August. Nvidia’s $5 billion investment in September also boosted market optimism.
Potential Apple deal remains
Intel CEO Lip-Bu Tan said in May during an interview with CNBC that the company expects commitments from multiple foundry customers in the second half of 2026. That same month, Intel shares jumped about 14% following reports of a preliminary chip manufacturing agreement for Apple.
Chip analyst Ben Bajarin suggested Apple might prefer to wait for the 18A-P process. Timing remains a critical factor for any potential collaboration.
Technical barriers and competition
One significant challenge for Intel is that it primarily produces chips based on the x86 instruction set. In contrast, companies like Apple, Google, and Amazon develop their custom chips using the Arm architecture.
Neil Shah noted that Intel lacks experience in Arm-based chip production, while TSMC has established strong expertise in this area. TSMC’s expansion of its $165 billion chip manufacturing campus about 50 miles north of Intel’s Arizona factory also intensifies competition.
Intel’s packaging technology could stand out
Experts believe Intel has a chance to secure its first major customer through its chip packaging technology. This stage involves assembling separate chip components into larger systems, a manufacturing process that is becoming increasingly complex.
Intel’s EMIB packaging method competes with TSMC’s CoWoS technology. Shah pointed out that TSMC faces significant packaging bottlenecks, which could create an important short-term opportunity for Intel.
