Intel drops on report that Nvidia stopped testing the 18A chip production process used by the chip manufacturer
Early on Christmas Eve, shares of Intel are tumbling like Santa off a rooftop after one too many spiked eggnogs.
Reuters reports that Nvidia “recently tested out whether it would manufacture its chips using Intel’s production process known as 18A but stopped moving forward, two people familiar with the matter said.”
Intel, for its part, told Reuters that its 18A processes are “progressing well” while it “continues to see strong interest” for its more advanced 14A production process. Previous reporting from the outlet indicated that in CEO Lip-Bu Tan’s early days leading Intel, he considered shelving the 18A manufacturing process entirely in favor of 14A in a bid to be more competitive with the likes of TSMC.
The $4 trillion chip designer announced a $5 billion investment in the chipmaker back in September as part of a collaboration that would see the two parties codevelop data center and PC products. That news sent shares of Intel up 23% in a single session, their biggest one-day gain since 1987.
