Shares of Intel Corp. experienced a notable decline in trading on Wednesday, following a report that fellow chip giant Nvidia Corp. has paused a critical test of Intel's most advanced manufacturing technology.
Report Details and Market Reaction
According to a Reuters report citing two unidentified sources familiar with the matter, Nvidia recently conducted a test of Intel's cutting-edge 18A semiconductor fabrication process but has since stopped moving forward with the initiative. The news prompted an immediate market reaction, with Intel's stock falling approximately 2.2% as trading commenced in New York.
Spokespeople for both Santa Clara-based companies did not immediately respond to requests for comment on the report. However, an Intel spokesperson did tell Reuters that the company's 18A manufacturing technologies are "progressing well."
Context of the Intel-Nvidia Relationship
The reported halt comes just months after a significant financial agreement between the two industry titans. In September 2025, Nvidia agreed to invest US$5 billion into Intel. This move followed the U.S. government's decision to take a roughly 10% stake in Intel and was widely viewed as a major vote of confidence in Intel's turnaround efforts.
However, it is crucial to note that the $5 billion investment deal did not include a firm commitment for Intel to manufacture Nvidia's chips. The recent test of the 18A process was seen as a potential step toward such a production partnership, making its reported suspension a significant development.
Intel's 18A Technology and Domestic Ambitions
Intel's 18A process represents the cornerstone of CEO Pat Gelsinger's ambitious strategy to regain the company's technological leadership. The company recently opened a new factory, Fab 52 at its Ocotillo site in Arizona, which is the first facility slated for mass production using the 18A technique. Intel touts this as the most advanced production technology both developed and deployed within the United States.
The 18A technology incorporates two key industry breakthroughs according to Intel:
- Gate-All-Around Transistors: This allows for finer control over the billions of microscopic switches in a chip, enabling more powerful and energy-efficient semiconductors.
- Power Delivery Innovation: A new method for powering chips, which further supports efficiency and performance gains.
This domestic advanced manufacturing push is a direct attempt to challenge the global semiconductor foundry leader, Taiwan Semiconductor Manufacturing Co. (TSMC), and reassert American prowess in a critically important industry.
For Intel, which has struggled with financial losses and technological catch-up in recent years, securing a high-volume client like Nvidia for its nascent foundry business would be a transformative achievement. The reported pause in testing introduces uncertainty into that narrative, even as Intel continues to promote the progress of its 18A technology.
