Intel attracts interest for test chips using new manufacturing process

By Max A. Cherney and Stephen Nellis

SAN JOSE (Reuters) -Intel said on Tuesday several of its contract manufacturing customers planned to build test chips for the company's forthcoming advanced manufacturing process that is currently still in development.

The embattled chipmaker indicated it had received interest from customers at the company's Direct Connect conference for its contract chip business, or foundry. Intel's attempt to build a foundry unit has hit snags but ultimately the goal has been to rival TSMC.

Upon taking the CEO job in March, Lip-Bu Tan vowed to reshape Intel and at his first public remarks asked the company's customers to be "brutally honest" when delivering feedback. As part of his plans to remake Intel, Tan plans to revamp the company's foundry operation.

At Tuesday's San Jose event, Tan said that since he took the job five weeks ago, people in the industry have been asking him whether he plans to commit to the foundry business.

"The answer is 'yes'," Tan said. "I'm committed to (making) the Intel foundry successful, and I know there are areas we need to improve."

The still-in-development manufacturing process known as 14A had planned to introduce a new type of advanced chipmaking tool known as a high-NA EUV machine. The 14A process also includes a new technology for power delivery.

Intel also said on Tuesday the company had distributed an early version of the digital design kit that is necessary to ensure Intel can successfully transform a chip blueprint into a working piece of silicon.

Typically chip companies build test chips to evaluate a new manufacturing process ahead of committing to a complete design, which is far more expensive and risky. Broadcom and Nvidia have run tests for Intel's current advanced manufacturing process known as 18A, Reuters reported in March.

Intel reiterated it was planning to ramp up the 18A process to high-volume production this year. It plans to initially manufacture chips with 18A at its research and development lab near Hillsboro, Oregon. The company's factories in Arizona will ramp up production this year, Intel said.

(Reporting by Max A. Cherney and Stephen Nellis in San Francisco; Editing by Chris Reese)