Intel’s upcoming Nova Lake-S generation is nearing high‑volume production, and the company is already shaping its manufacturing mix. A research note from investment bank KeyBanc Capital Markets revealed that Intel originally planned to outsource the main compute tile production for Nova Lake to TSMC, using its 2 nm N2 node, with about 60‑70 % of the chips coming from the foundry.

The latest supply chain data shows Intel now intends to bring the majority of the compute tiles in‑house, with roughly 80‑90 % manufactured by Intel Foundry on the mature 18A node. This pivot comes as the 18A yields have finally reached a reliable plateau, eliminating the risk of product delays.

Yield issues that plagued the 18A node over the past months have been fully resolved. Defect rates are now at D0 = 0.1–0.2, and Intel has achieved the lower end of that spectrum thanks to node improvements and high‑volume runs of Panther Lake.

Intel’s current 18A capacity is about 30,000 wafers per month, spread across Fab 52 in Phoenix, Arizona, and another site in Hillsboro, Oregon. While sufficient for internal products, additional capacity will be required to meet the demand for Nova Lake in the coming months.