As it ramps up its 18A manufacturing process technology and seeks to attract external customers for the technology, Intel is purportedly aggressively selling the chips to its PC partners as well, according to a report from The Nikkei Asian Review. The 18A process is at the center of media attention these days due to Apple's interest in the technology, and the aggressive sales strategies by Intel are forcing its partners to redesign their products in order to accommodate the new chips, says the report.
Intel Ships Latest 18A CPUs Along With Older Chips, Say PC Manufacturers
The biggest news surrounding the 18A manufacturing technology these days that's making the rounds in the media is an order from consumer electronics giant Apple. One such claim came from the monthly call of GF Securities Hong Kong's monthly call, where analysts claimed that Apple had signed an agreement with Intel to use the 18A-P manufacturing process to procure the M7 chip. The analysts added that for its smartphone processors, the Cupertino, California technology firm would use the 14A chip technology, which was expected to enter production by 2028 end.
The initial report was followed by coverage from well-known Apple analyst Ming-Chi Kuo. Kuo tied in the Intel orders into Apple's supply chain strategy. He used the orders to argue that the deal with Intel was Apple's attempt to create leverage with TSMC by securing an alternate supplier as the latter's advanced chip manufacturing lines became fully booked due to hot AI GPU demand.
Intel's Latest Chips Force PC Makers To Redesign Their Products
Now, a fresh report from the Nikkei Asian Review claims that Intel is asking its PC customers to use the latest chips instead of the older ones. The firm claims that the supply of these CPUs, which are made on the 18A manufacturing process technology, is better than the older chips, according to the company.
By judging the remarks made by a PC manufacturing executive quoted by the Nikkei, it appears that Intel might be facing capacity constraints for its older Intel 7 nodes. The executive remarked to the publication that while his firm had placed an order for 100 CPUs made on the Intel 7 process, it was supplied with 30 chips, out of which ten were made on the latest Intel 18A node. The executive added that Intel told him that if he did not accept the 18A chips, they would be provided to another customer, presumably without being replaced by the originally ordered Intel 7 chips.
Using the latest 18A chips requires PC companies to redesign their products in order to justify the higher prices to consumers. The redesign includes using higher-quality displays and other components in a costly process that also delays product launch timelines, say the industry participants.
About the author: Ramish is a seasoned technology writer and editor with more than a decade of experience. He specializes in semiconductor fabrication and market analysis. With a background in finance and supply chain management - via his bachelors in Finance and a micromasters in supply chain management from MIT - Ramish combines financial rigor with deep industry insight to deliver accurate and authoritative coverage.
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