Nvidia’s decision to halt testing of Intel’s next-generation manufacturing process, codenamed 18A, has caused significant turmoil in the technology and financial markets.

Nvidia halts all testing

The decision not to proceed to the next stage of this advanced semiconductor technology testing process has reignited debates about Intel’s foundry strategy and has drawn strong reactions from investors. With the loss of market confidence, Intel shares fell by 2.2% at the open of trading.

Intel recently commissioned Fab 52 in Ocotillo, Arizona, as the first center to begin mass production using the 18A manufacturing technique. The company positions this technology as the most advanced semiconductor manufacturing process developed in the United States.

The core strategy involves competing with global leader TSMC and bringing advanced chip manufacturing back to a US-centric structure. However, Nvidia’s suspension of the testing phase raises questions about the speed at which these large-scale commercial goals are being achieved and how ready the market is for this process.

The commercial ties between Nvidia and Intel had become more strategic with the $5 billion investment deal in September and the US government’s stake in Intel.

Nvidia’s support, particularly its rise in the field of artificial intelligence, has made it one of the world’s most valuable companies, and this support is critical for Intel, which is experiencing financial difficulties. Despite these developments, Intel states that its 18A technology is progressing as planned and that there have been no disruptions.