Intel’s challenges seem to be compounding as its much-anticipated 18A chip node is reportedly struggling with production yields, currently at only 10%. This number is an improvement from last year’s shocking 5% but still falls short of Intel’s target of 50% or higher for profitability, as per reports from Reuters.

Interestingly, Intel has shifted its focus towards the 14A node, highlighting the apparent lack of confidence in the 18A node’s viability. The revelation of these low yields brings into question not just the reliability of the 18A chips but also the financial consequences as Intel plans its product launches.

Intel has admitted to not securing significant commitments from customers for this node, which suggests looming profitability challenges. Analysts infer that even if Intel manages to launch the Panther Lake CPUs, it may have to accept losses initially due to the yields being so low.

Their strategy to reduce chip size in an attempt to minimize manufacturing flaws may not be enough if yields remain inadequate. Intel’s situation underscores the competitive pressures in the semiconductor industry, and further developments are anticipated as the tech giant attempts to navigate these turbulent waters.