Intel Faces Low Yields in Panther Lake 18A Chip Production

Intel is encountering significant production challenges with its next-generation laptop processor, Panther Lake, built on the advanced 18A manufacturing process. Despite heavy investment and intended high-volume production in late 2025, the yield rates are critically low—only about 5% to 10% of chips meet specifications, far below the 50% to 80% threshold needed for profitable mass production. These persistent quality issues and defect rates threaten Intel's ability to compete with Taiwan Semiconductor Manufacturing Company (TSMC) and may force the company to sell chips at a loss or reconsider its leading-edge manufacturing ambitions. Intel's new CEO, Lip-Bu Tan, is attempting to improve yields through supply chain strategies, but external foundry business acquisition remains uncertain, which is crucial for the company's future competitiveness. While Intel remains confident in eventual improvements, industry experts warn that without a breakthrough in yield rates, the company's foundry division and high-end CPU ambitions could face serious setbacks. Overall, Intel's struggle to close the technology and production gap with TSMC continues to cast doubt on its strategy to regain market share and profitability in advanced semiconductor manufacturing.