- Intel’s (INTC) stock rose $1.37, or 5.77%, to $25.12 in premarket trading as Nvidia (NVDA) and Broadcom (AVGO) test its 18A process for potential manufacturing contracts, offering a lifeline to its contract chip-making business amid U.S. tariff-driven efforts to boost domestic production.
- The 18A process, critical for advanced AI chips, faces scrutiny after past delays and Broadcom’s disappointing prior tests, while AMD also evaluates its viability, highlighting Intel’s technical challenges despite strong ecosystem interest.
- President Trump’s push for tariffs up to 100% on chip imports positions Intel as a key player in U.S. semiconductor resurgence, though rivals TSM and Broadcom explore breaking Intel apart, with the White House likely to resist foreign control of its factories.
Intel’s (INTC) stock surged nearly 6% to $25.12 in premarket trading on Monday following a Reuters report suggesting that Nvidia (NVDA) and Broadcom (AVGO) have begun manufacturing tests to evaluate Intel’s 18A process for potential contracts. This move could revitalize Intel’s struggling contract chip-making business. The 18A technology, designed for advanced AI processors, positions Intel as a competitor to Taiwan Semiconductor Manufacturing Co. (TSM), the global leader in contract chip production, and has drawn significant interest amid U.S. efforts to bolster domestic semiconductor manufacturing through tariffs on foreign rivals like TSM. Intel’s spokesman confirmed to the publication a robust ecosystem engagement for 18A but declined to comment on specific customers, even as the process – critical to reversing Intel’s fortunes – has faced delays under interim leadership, raising doubts about its reliability after Broadcom’s disappointing test results with Intel last year.
The backdrop to Intel’s potential resurgence is intensifying U.S. policy under President Donald Trump, who has pushed for tariffs as high as 100% on chip imports, accusing Taiwan of undermining American semiconductor dominance and spotlighting Intel as a cornerstone of domestic production. This political momentum contrasts with competitive pressures, as Reuters reports suggest TSM and Broadcom are eyeing deals to potentially dismantle Intel – TSM exploring a majority stake in Intel’s factory unit and Broadcom targeting its chip-design and marketing operations – though a White House official indicated resistance to foreign control of Intel’s factories. Meanwhile, Advanced Micro Devices (AMD) is also assessing the 18A process, adding to the stakes for Intel, whose recent vulnerabilities have made it an acquisition target even as Nvidia and Broadcom’s tests signal a possible lifeline for its manufacturing ambitions.
Intel’s 18A process, while delayed, aligns with a broader U.S. strategy to reduce reliance on foreign chipmakers, especially as tariffs threaten to reshape global supply chains, yet its past struggles and the specter of corporate breakup underscore the high-wire act Intel faces. Nvidia and Broadcom, both powerhouse chip designers, could provide Intel with a much-needed boost if tests succeed, but the shadow of last year’s underwhelming trials with Broadcom looms large, suggesting technical hurdles remain. As Trump’s administration presses its aggressive stance – evidenced, as per the report, by recent meetings with TSM’s CEO C.C. Wei – Intel stands at a crossroads, balancing opportunity from domestic policy support against the risk of being carved up by rivals in a rapidly consolidating industry.
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