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Intel Begins 18A-P Production: New Stock Expectations Amid Potential Apple Deal and US Stake
Intel announced the start of production for its most advanced manufacturing node, 18A-P, strengthening the path toward a potential chip deal for Apple devices. This move follows increased market optimism after the US government acquired a 10% stake in Intel and Nvidia's $5 billion investment.
Intel has announced the start of production for its most advanced chip manufacturing process, 18A-P. The company stated that this step strengthens the path toward a potential agreement for Apple devices.
The announcement was made 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.
Risk Production Phase
18A-P was first announced last year. According to the company, the process is currently in the risk production phase. This stage refers to an early production period where data is collected to ensure customer requirements can be met before final approval.
After years of error margins and low yield rates, Intel placed 18A at the center of its transformation plan. The company aims to become a competitive chip manufacturer not only for its own products but also for external customers with this production line.
Although the 18A process was transferred to computer chips in January, Intel has yet to secure a major external customer. Analysts suggest that 18A-P could serve as a stronger testing ground to showcase the company's capabilities.
Claims on Performance and Power Consumption
According to Intel, 18A-P can deliver 9% higher performance or consume 18% less power compared to 18A. The company also reported that this process is compatible with 18A, which has been in serial production at its Arizona facilities since December.
Intel further revealed that 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 efficiency and durability.
Yield Rate as a Critical Metric
Semiconductor analyst Neil Shah stated that 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 company's rise was the US government's acquisition of a 10% stake in Intel in August. Nvidia's $5 billion investment in September also boosted market optimism.
Potential Apple Deal Continues
Intel CEO Lip-Bu Tan said in May during an interview with CNBC that he expects commitments from multiple foundry customers in the second half of 2026. That same month, Intel shares rose about 14% following reports of a preliminary chip production agreement for Apple.
Chip analyst Ben Bajarin suggested that 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 using the x86 instruction set. In contrast, companies like Apple, Google, and Amazon develop their custom chips based on 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 makes the competition more visible.
Intel's Packaging Technology Could Stand Out
Experts believe Intel has a chance to secure its first major customer in 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 mentioned that TSMC faces significant packaging bottlenecks, which could create an important short-term opportunity for Intel.
Source: CNBC
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