According to exclusive information obtained by two sources close to Reuters, Intel is reportedly facing a challenging situation with the high-volume manufacturing of its next-generation PC processor, codenamed "Panther Lake." According to two anonymous sources, Intel's Panther Lake yields, manufactured on the company's promising 18A node, are reportedly so low that Intel may struggle to break into profit with the high-volume production. Typically, these yields begin low and gradually increase over time as Intel advances and optimizes its manufacturing processes. However, given Intel's financial situation and the massive net loss the foundry is producing, this is another challenging situation for Team Blue. In a statement on July 30, Intel's CFO, David Zinsner, told Reuters that Panther Lake is in its early ramp process, meaning the company will be able to deliver the chips; however, many fewer working chips are being produced from 18A production facilities than expected.

Typically, Intel aimed for 50% yields before sending a chip into high-volume production, but this case may be an exception. Intel's yield goal is between 70% and 80% for a profitable business, but launching a CPU with lower production yields is necessary to avoid falling behind in the PC market share grab race. Sources close to Reuters note that a significant breakthrough in chip yields is unlikely by the Q4 launch window of Panther Lake, but there is room for smaller improvements. Without massive improvements, Intel could resort to selling chips at a loss to keep up with the competition. While Intel management keeps reassuring that the company's products will be sustainable for the business, some speculators believe the opposite.
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