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Nvidia and Broadcom are running manufacturing tests with Intel, Reuters reported, while a separate Wall Street Journal report said Broadcom and Taiwan’s TSMC are studying potential acquisitions of different parts of Intel’s business.
If the manufacturing tests led to contracts it would be a significant revenue windfall for Intel’s delayed efforts to offer foundry services to third parties – efforts that have as yet failed to turn up any major chip-designer customers.
Meanwhile, the acquisitions being considered by Broadcom and TSMC would involve splitting up the iconic American chip company, something that would have been unthinkable before Intel’s recent troubles.
Break-up bid
Broadcom is considering making a bid for Intel’s chip-design and marketing business, while TSMC is interested in Intel’s chip plants, the Journal reported.
A report in February said TSMC had looked into taking a controlling interest in Intel’s chip plants, possibly through a consortium or other investment vehicle.
As yet none of these deals have been submitted to Intel.
Nvidia and Broadcom’s manufacturing tests are an early show of confidence in Intel’s foundry plans, which were a centrepiece of the turnaround efforts by former Intel chief executive Pat Gelsinger before he was ousted by the board in December.
AMD is also evaluating whether Intel’s advanced 18A manufacturing process is suitable for its needs, but it was unclear whether AMD had sent test chips through the factory, Reuters’ report said.
The tests do not involve complete chip designs but are aimed at determining the behavior and capabilities of the 18A process, a preliminary process before purchasing complete chips at high volume.
Broadcom reportedly carried out tests with Intel last year and while disappointed with the results, was continuing to evaluate using Intel as a manufacturing partner.
Nvidia and Broadcom currently use foundry leader TSMC to manufacture their chips.
Foundry plans
“We don’t comment on specific customers but continue to see strong interest and engagement on Intel 18A across our ecosystem,” Intel said in an emailed statement.
Intel’s 18A process competes with TSMC’s most advanced manufacturing offering, and is seen as a key US strategic asset as it is the only high-end manufacturing facility operated by an American company.
To date the foundry service has manufactured chips mainly for Intel itself, with plans to open it up to third parties delayed to 2026.
Reuters said the plan has been delayed by another six months to at least mid-2026 as Intel qualifies crucial intellectual property for the 18A process.
Intel said it will “begin ramping production in the second half of this year, delivering on the commitments we have made to our customers” and expects its fabrication plants to begin receiving designs from customers this year.
The company has signed deals with Microsoft and Amazon to produce chips using 18A, but has not released details of the products to be manufactured or their volume.
Revenue from the foundry segment declined 60 percent last year.
