Intel's 18A process, a node that is said to be a "turning point" for Intel Foundry, is now being said to feature only 10% yield rates, shocking the markets.

Team Blue is having a hard time finding a breakthrough in the industry since all its divisions are massively underperforming. In particular, Intel Foundry, a part of the firm's "core strategy" for an economic revival, is now witnessing significant barriers to adoption from the markets, mainly due to fierce competition and sluggish performance. In a report by the Korean media outlet Chosun, it is now said that Intel Foundry's high-anticipated 18A process has a yield rate of less than 10%, making it impossible for the semiconductor to reach mass-production stages.

While the report cites a figure that is hard to believe, it might be the "bitter reality" given the recent change in circumstances at Intel. Broadcom, which is said to be a "prime" IFS customer, reportedly wasn't satisfied with Intel's 18A process at all, with their engineers claiming that the process isn't in a position to reach high-volume production. This was associated with lesser "yield rates," although we never did get an actual number before until now. The Korean media outlet claims Broadcom has canceled its orders at Intel and is now looking for viable alternatives.

It is said that the lack of yield rates and the lack of success with IFS were among the primary reasons why Intel's CEO Pat Gelsinger was apparently "fired" from his position. Another catalyst here was due to the under-performing IFS; Team Blue failed to secure larger subsidies from the US government, which acted as the final blow for the termination of Gelsinger. Things aren't looking for Intel Foundry, and a division sell-off looks imminent now.

While Intel is struggling with its current nodes, it seems like arch-rival TSMC is well-settled with its offerings. Despite being slightly behind "node size," TSMC's N2 (2nm) process is said to be far superior to Team Blue's 18A (via Tom's Hardware), mainly due to a higher "SRAM density." This acts as a pivotal factor, given that SRAM density is key in deciding node efficiency and performance, and it looks like TSMC has taken the lead this time as well.

With a key "IFS advocate" now out of the way, Intel might shift its focus away from the foundry business to the manufacturing and product divisions, which could mean that an IFS sell-off or merger deal isn't off the books for now.