However, three months on, it’s now being reported that yields remain critically low, reaching only about 10% by this summer, up from just 5% at the end of 2024.

Intel has historically targeted yields above 50% before ramping production, as it could impact profit margins, while substantial profits tend to be generated once yields have reached around 70% to 80%.

While Intel claims its 18A process is on track for high-volume production of Panther Lake in 2025, these reports have cast doubts on those ambitions and suggest that such low yields could make profitable production difficult in the short term. Achieving a significant yield improvement ahead of Panther Lake’s scheduled fourth-quarter launch will be highly challenging.

As a result, it’s been suggested that Intel may be forced to sell some chips at reduced margins, or even at a loss.

Intel has disputed these reports but has not given any details as to whether the yield figures are significantly better, but Intel CFO David Zinsner did say that the company was aiming to reach yield levels sufficient for volume production by the end of 2025.

Currently Intel remains, in part, reliant on TSMC to manufacture its in-house designed chips and TSMC began accepting 2nm orders back in April, with trial production yields reaching 60%.

While Intel is reportedly struggling, Samsung is said to have also been making progress on its 2nm yields. Early trial runs this year showed yields had reached around 30%, which have now – reportedly - exceeded 40%.

Click here to read more...