Intel (NASDAQ:INTC) moved higher in premarket trading on Wednesday after revealing that its advanced 18A-P chip manufacturing technology has entered risk production, an important phase that precedes volume manufacturing.
The development marks another step forward in Intel’s effort to execute on its semiconductor manufacturing strategy and attract additional customers to its growing foundry business.
Shares of the company gained approximately 4.5% in premarket dealings by 05:12 ET (09:12 GMT).
New Process Delivers Performance and Efficiency Gains
According to Intel, the 18A-P node provides a 9% increase in performance compared with the original 18A process when operating at the same power level.
Alternatively, the company said customers can achieve an 18% reduction in power consumption while maintaining equivalent performance levels.
The upgraded process also introduces enhancements in thermal efficiency and design adaptability, helping developers optimize future chip architectures.
Design Compatibility Aims to Ease Adoption
One of the key advantages of the 18A-P process is its compatibility with the existing 18A design ecosystem.
Because both nodes use the same design rules, chip designers can reuse intellectual property, tools and development workflows without the need for major redesign efforts.
Intel believes this compatibility will simplify migration for customers and accelerate adoption of the new manufacturing technology.
AI Demand Continues to Support Chip Sales
The announcement comes as demand for processors used in artificial intelligence infrastructure remains strong.
During the first quarter, demand was robust enough that Intel sold inventory that had previously been written down, highlighting the rapid growth in AI-related computing requirements.
The company continues to position itself as a major supplier of hardware for increasingly complex AI workloads.
Foxconn Partnership Targets Data-Centre Challenges
Earlier this month, Intel unveiled a strategic partnership with Foxconn focused on addressing infrastructure constraints created by the expansion of AI applications.
The collaboration aims to support next-generation data centres as inference workloads and agentic AI systems place greater pressure on computing resources.
Under the agreement, Intel and Foxconn will develop server racks that combine Intel processors with the company’s AI accelerator technology.
Expansion Beyond Traditional Computing Markets
The partnership also includes efforts to improve system interconnects, monitoring capabilities and cooling technologies designed to enhance efficiency in large-scale computing environments.
Beyond data centres, the two companies plan to pursue opportunities in robotics, autonomous vehicles, smart city infrastructure and advanced manufacturing applications.
Intel sees these markets as important long-term growth areas as demand for high-performance computing and AI-enabled technologies continues to expand.