Intel 18A Capacity Grows Significantly, Yield Exceeds Expectations
Intel announced during its Q2 2026 earnings call that its Intel 18A manufacturing capacity has seen significant growth, with on-wafer yield consistently exceeding expectations.
Intel stated on July 22, 2026, during its second-quarter earnings call that its Intel 18A process manufacturing capacity has achieved significant growth, and on-wafer yield has consistently exceeded expectations.
The company's foundry business has reportedly reduced manufacturing costs for the "Panther Lake" (Core Ultra 3rd gen) processor's primary SKUs by approximately 50% in 2026. Future cost reductions are targeted at an additional 20% by year-end and further compression in 2027.
During the June quarter, Intel's foundry operations surpassed internal production targets for their Intel 7, Intel 3, and Intel 18A processes. Specifically, the yield for Intel 18A in July was reported to be higher than the target set in March.
Despite these advancements, Intel's processor supply remains constrained. Capacity increases are expected primarily in late Q3 and Q4. The company anticipates PC consumption in the second half of 2026 to be below seasonal averages, with an annual decline potentially exceeding 10%.