Intel Corp. sharply declined after a report that Nvidia Corp. discontinued experimentation of Intel’s cutting-edge chip manufacturing process.
On Wednesday, Reuters reported that Nvidia evaluated Intel’s 18A production technology but decided not to move forward, citing two individuals familiar with the matter.
Speaking to Reuters, an Intel spokesperson stated that the company’s 18A manufacturing technologies are advancing well.
Intel stocks significantly dropped nearly 2.2% in early New York trading following the report.
Recently, Intel opened Fab 52 at its Ocotillo site in Arizona, the first facility to enter mass production using the 18A process.
The company called it a next-generation technology that has been developed and deployed in the United States.
The effort is central to Intel’s strategy, aiming to outdo a leading industry player Taiwan Semiconductor Manufacturing Co. (TSMC) and strengthen domestic chip production.
A few months ago, Nvidia signed a deal to invest $5 billion in Intel after the US government purchased a 10% equity in the company.
While the investment was seen as a vote of confidence in Intel’s turnaround efforts, it did not include a commitment for Intel to manufacture Nvidia chips.
The 18A process brings two major innovations: gate-all-around transistors that enhance power efficiency and performance, and a new power delivery method designed to support higher transistor density and reduced energy consumption.
