Intel Faces Yield Problems in Key 18A Manufacturing Process for Next PC Chip

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Intel’s ambitious push to regain leadership in high-end chip manufacturing has hit a significant hurdle. According to sources familiar with the matter, its next-generation “18A” production process — critical for the upcoming “Panther Lake” laptop chips — is struggling with low yields, raising concerns about profitability and competitiveness against industry leader TSMC.

The 18A process is central to Intel’s strategy of expanding its in-house chipmaking and building a competitive foundry business. Billions have been invested in factories and technology, aiming to close the gap with TSMC. Panther Lake, expected in high volumes in 2025, features next-gen transistors and a more efficient power delivery system.

However, early tests have shown disappointing results. Only a small fraction of chips have met required standards, with yields reportedly around 5% late last year and about 10% by mid-2024. Intel disputes these figures but has not disclosed official numbers. Industry norms suggest profitability usually requires yields between 70% and 80%. Without major improvements by the planned Q4 launch, Intel may face selling chips at reduced margins or even at a loss.

Intel CFO David Zinsner acknowledged yields “start off low and improve over time” and stressed that the product remains “fully on track.” Still, sources describe the 18A rollout as risky, likening it to a “Hail Mary” due to the simultaneous introduction of multiple untested technologies.

Compounding the challenge, defect rates per chip area are reportedly about three times higher than acceptable for mass production. While Intel is working to improve yields monthly, margins are not yet favorable even at current levels. The company has warned that without securing external business for 14A — the successor to 18A — it could exit advanced manufacturing altogether.

For now, Intel still relies partly on TSMC for some in-house designs. Its follow-up to Panther Lake, “Nova Lake,” is also expected to be produced partly by TSMC.

Europe’s Ageing Power Plants Set for AI-Driven Data Centre Transformation

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Big tech firms, including Microsoft and Amazon, are eyeing Europe’s retiring coal and gas plants as prime locations for new data centres — tapping into their existing power grid connections, water infrastructure, and cooling systems to meet surging AI energy demands. Utilities such as Engie, RWE, and Enel see these conversions as a way to offset decommissioning costs, secure lucrative long-term power contracts, and underwrite future renewable projects.

Many of the EU’s and UK’s 153 remaining hard coal and lignite plants are scheduled to close by 2038, joining the 190 that have shut since 2005. Repurposing these sites offers utilities stable, high-margin revenues, with tech companies reportedly paying up to €20/MWh in “green premiums” for low-carbon electricity. Depending on scale — some data centres can require up to a gigawatt — such premiums could translate into contracts worth hundreds of millions to billions of euros over decades.

The approach also addresses one of Europe’s key data centre bottlenecks: grid connection delays, which can stretch over a decade. Converting old plants offers “speed to power,” significantly accelerating deployment timelines. Projects range from retrofitting existing sites to building “energy parks” pairing renewable generation with direct supply to data centres.

Engie is actively marketing 40 potential sites worldwide, including its decommissioned Hazelwood coal plant in Australia, while EDP, EDF, Enel, and Britain’s Drax are pursuing similar strategies. Some developments, such as a planned 2.5 GW facility at a former German coal plant and multiple UK sites, are already in motion — though details remain scarce for security reasons.

Industry analysts say the trend represents a diversification of utility business models, creating new revenue streams and fostering long-term tech–energy partnerships. For hyperscalers, the premium is worth paying if it secures earlier market entry in the AI race.

Small Public Firms Turn to Ether in New Crypto Rush Despite Risks

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A growing number of smaller publicly traded companies are adding ether to their balance sheets, positioning it as both an inflation hedge and a growth asset. Corporate treasuries collectively held around 966,304 ether — worth nearly $3.5 billion — by the end of July, compared with just under 116,000 tokens at the close of 2024, according to a Reuters analysis.

Ether’s appeal lies in its dual role: it serves as a high-potential investment and as a functional asset powering the Ethereum blockchain. Unlike bitcoin, whose value depends solely on price appreciation, ether can also be staked to earn yields of about 3–4% while supporting the network. Proponents, such as Bit Digital CEO Sam Tabar, view ether as “institutional-grade” yet early enough in adoption to offer substantial upside. Others liken its role in decentralized finance to oil in the energy sector — essential infrastructure rather than just a store of value.

Investor enthusiasm has fueled sharp share price surges for companies announcing ether purchases. Peter Thiel-backed BitMine and GameSquare saw stock gains of 3,679% and 123%, respectively, after disclosing accumulation plans. However, analysts caution against overexcitement, warning that such rallies resemble the “meme stock” phenomenon.

Challenges persist, including crypto’s inherent volatility, regulatory uncertainty — especially regarding staking activities — and accounting complexities for locked tokens. Many corporate finance leaders remain wary, prioritizing liquidity and predictability over speculative gains. Staking rewards could also fall into compliance gray areas, raising questions over taxation and custodial obligations.

Despite these hurdles, some firms remain aggressive. BitMine sold a $182 million stake to ARK Invest in July, while GameSquare has hinted at further stock sales to finance ether buys. As CEO Justin Kenna put it, the approach is “opportunistic” rather than overly dilutive.