Nvidia and Broadcom are conducting manufacturing tests with Intel's advanced 18A chip-making process, signalling potential confidence in the struggling company's technology.

Sources indicate that the tests, though preliminary, could lead to major contracts worth hundreds of millions of dollars. Advanced Micro Devices (AMD) is also evaluating Intel's capabilities, though it is unclear if it has sent test chips for validation.

Despite the interest, Intel's foundry business has faced repeated delays, with its 18A process now pushed back another six months due to challenges in qualifying essential intellectual property.

The company has struggled to secure major external clients, with most of its foundry revenue still coming from its own chip production.

The US government sees Intel as critical to restoring domestic semiconductor manufacturing and has explored deals to strengthen its position, including potential partnerships with TSMC.

Intel has signed agreements with Microsoft and Amazon for chip production, though details remain vague. Industry experts suggest that many chip designers are waiting to see if Intel can reliably deliver on its foundry promises before committing to large-scale production.

Financial setbacks have placed additional pressure on Intel, with its foundry revenue declining 60% last year and break-even projections now delayed until at least 2027.