Intel's 18A Process Ambitions Hit a Snag? Flagship 2nm Chip Reportedly Outsourced to TSMC for Production

According to media reports, Intel is commissioning TSMC to produce Nova Lake CPUs using its 2nm process. Considering that Intel itself possesses the 18A process and has consistently promoted it as superior to TSMC's 2nm technology, this toll processing contract may reveal some thought-provoking signals.

Intel claims to provide the best products for its customers, which could be a reason for outsourcing Nova Lake production to TSMC. However, the industry also suspects that since the 18A process has already entered trial production, Intel's outsourcing may be driven by capacity demand rather than issues related to performance or returns.

There are also rumors that Intel may adopt a dual-source strategy: using TSMC's 2nm technology for flagship products while employing the 18A process for its own non-flagship chips.

This is a significant signal for Intel, as it means that even if its internal process node (18A) is not used for flagship chips, Intel will not abandon these crucial production processes.

However, Intel's trade-off carries another implication for the market. As a major US-based chip manufacturer, Intel has held a special position in former President Trump's chip revitalization plan, and the market has been watching whether its 18A technology could help it overtake in the high-end chip sector. Currently, Intel seems to be at a disadvantage in this race.

If you can't beat them, join them.

Previously, AMD officially confirmed that it would entrust TSMC with the production of its Zen 6 Venice server chips, becoming one of the first customers for TSMC's 2nm process. Additionally, Apple is also one of the early adopters of TSMC's 2nm process.

Reports indicate that Intel is currently conducting trial production at TSMC's Hsinchu plant, with both parties working to improve chip yield. TSMC aims to begin mass production of 2nm chips in H2.

As early as the beginning of 2024, former Intel CEO Pat Gelsinger pointed out that Intel plans to outsource the compute modules of two key processors, Lunar Lake and Arrow Lake, to TSMC for the first time.

Some suggest that under the leadership of new CEO Sanjay Chen, Intel may further leverage TSMC's 2nm process. However, this would increase Intel's expenses, and the company needs to carefully balance accelerating product releases through external foundries with delays in internal manufacturing.

There are also reports that Intel's 18A process may be used to produce some other products of interest, such as Clearwater Forest and Diamond Rapids, with the former's market launch delayed to H1 2026 due to packaging issues.