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Investing.com - Only a small percentage of Intel (NASDAQ:INTC)’s high-end laptop semiconductors printed through a new production process being used by the company have been good enough to make available to consumers, Reuters has reported.
Citing two people who were briefed on the firm’s test data, the news agency said the relatively weakness in this percentage, known as yield, may mean that Intel could face difficulties in profitably making the cutting-edge chip.
However, the yield could edge up or down depending on the optimization of manufacturing processes at a given foundry, while businesses have different methods of calculating the data, Reuters added.
Under new CEO Lip-Bu Tan, Intel has reportedly been pursuing a new strategy for its contract manufacturing division in a bid to win big-name cusotmers and compete with Taiwanese chip giant TSMC.
One feature of this shift has been a push to produce more advanced chips in-house. Intel has said it will use a manufaturing process it has dubbed 18A to reach this goal, and has reportedly spent billions of dollars in constructing and upgrading its facilities to develop 18A.
Despite disappointing early tests last year, Intel has said 18A is on pace to roll out the firm’s high-powered "Panther Lake" semiconductors at high volumes this year.
According to the news agency, Intel does not typically make a majority of its profits until yields touch between 70% to 80%. As a result, a massive yield increase would be needed for Panther Lake to be more profitable when it is launched later in 2025, Reuters said, adding that, without such a jump, some of the chips would have to be sold at either lower margins or a loss.