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Investing.com -- Nvidia and Broadcom (NASDAQ:AVGO) are conducting manufacturing tests with Intel (NASDAQ:INTC), according to a report from Reuters on Monday.
Intel shares are up over 6% premarket following the report.
The move is said to signal early confidence in the company's advanced production technology.
Two sources familiar with the matter reportedly told Reuters that the tests could indicate that the companies are considering committing significant manufacturing contracts to Intel.
If so, it could potentially provide a much-needed revenue boost to Intel’s struggling foundry business.
According to Reuters, the tests involve Intel’s 18A manufacturing process.
While the testing is ongoing, the report cautions that there is no guarantee Intel will secure long-term deals from either company.
“We don’t comment on specific customers but continue to see strong interest and engagement on Intel 18A across our ecosystem,” an Intel spokesperson told the media outlet.
The report also noted that AMD (NASDAQ:AMD) is evaluating Intel’s 18A process, though it is unclear if the company has sent test chips through Intel’s factories.
Reuters added that the tests are focused on assessing the behavior and capabilities of Intel’s 18A technology rather than producing full-scale chips.
Last year, a batch of Broadcom’s tests reportedly disappointed executives, but the company continued to review Intel’s foundry capabilities.
The tests come amid concerns about further delays in Intel’s ability to deliver for certain contract manufacturing customers, said Reuters.
With U.S. President Donald Trump's administration eager to restore American manufacturing prowess, it is hoped Intel can help the U.S. manufacture advanced semiconductors within its borders.
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