Broadcom is unhappy with Intel’s capabilities

Intel is mainly associated with its processors for desktops, laptops, workstations and servers. However, the Americans’ offer also includes graphics cards, artificial intelligence accelerators, network controllers and many other devices.

Intel may lose a large and important customer

Since the return of current CEO Pat Gelsinger, a strong emphasis has also been placed on Foundry Department. Intel has ambitious plans to become the world’s second largest semiconductor manufacturer by 2030. However, it seems that this is a much more difficult task and even billions of dollars in investments.

Reuters reports that Broadcom is not in favor of Intel 18A lithography. Both engineers and management were dissatisfied with the first test silicon wafers produced. It was concluded that mass production is currently unprofitable, but this is not yet the final assessment of the new technology.

Broadcom is a major supplier of chips for telecommunications equipment and one of the world’s leading custom chip designers. Americans are reportedly working on AI accelerators for OpenAIwhich makes Broadcom an important customer for TSMC and a desired customer for other foundries, including Intel.

The negative assessment is a big blow to Intel Foundry, but it is worth remembering that Intel 18A is still in the early stages of development. Even the Blue systems in this production process, i.e. mobile processors Intel Panther Lake-Uare expected to appear on the market only in the fourth quarter of 2025.