Nvidia has halted its test of Intel’s advanced 18A chip manufacturing process, raising concerns about Intel’s ability to attract major customers and deliver on its turnaround strategy. This move has shaken investor confidence, causing Intel’s stock to drop and casting doubt on the company’s competitiveness in the semiconductor industry.

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Nvidia recently halted a test run of Intel’s 18A manufacturing process, a move that has alarmed investors and driven Intel’s stock lower. The 18A process is a critical part of Intel’s turnaround strategy, as it promises to make chip manufacturing more efficient and competitive, particularly against global leader TSMC. The suspension of this test has sparked concerns about Intel’s ability to deliver on its promises and regain its competitive edge in the semiconductor industry.

Intel is currently working hard to rebuild trust with investors and customers. The company has received significant support, including a 10% stake from the U.S. government and a $5 billion pledge from Nvidia last September. Although Nvidia is not a direct customer of Intel and primarily works with TSMC, its willingness to test Intel’s 18A process was seen as a strong endorsement of Intel’s foundry business. This validation was important for Intel as it seeks to attract more high-profile clients.

The market reacted strongly to Nvidia’s decision, with Intel’s stock dropping about 3% in pre-market trading. Even though there was no formal contract between Nvidia and Intel, investors are closely watching Intel’s progress in securing major customers and advancing its manufacturing capabilities. The reaction reflects broader concerns about Intel’s ability to execute its turnaround plan and compete effectively in a challenging global market.

The 18A process was unveiled with much fanfare at a major event in October, where Intel highlighted its potential to support both external customers and its own next-generation laptop chips, expected to launch next year. The success of this process is seen as vital for Intel’s future growth and profitability. If the process fails to attract demand or faces technical setbacks, it could jeopardize Intel’s broader ambitions in both the foundry business and its own product lines.

Overall, there is a lot riding on Intel’s ability to deliver with the 18A process. Investors are looking for evidence of strong demand and the acquisition of marquee customers like Nvidia. The situation is further complicated by the broader push for U.S. chip manufacturing, supported by both government initiatives and industry demand. Intel’s performance in this area will be closely watched as a key indicator of its ability to stage a successful comeback in the semiconductor sector.