According to reports, chip designers Nvidia and Broadcom are running manufacturing tests with Intel, demonstrating early confidence in the struggling company's advanced production techniques.

The two tests, which have never been made public before, show that the businesses are getting closer to deciding whether to award Intel manufacturing contracts totaling hundreds of millions of dollars.

The choice might result in a boost in revenue and support for Intel's contract manufacturing division, which has been plagued by setbacks and has yet to reveal a major chip designer client.

Although it was unclear if it had sent test chips through the factory, Advanced Micro Devices is also assessing if Intel's 18A manufacturing method is appropriate.

“We don't comment on specific customers but continue to see strong interest and engagement on Intel 18A across our ecosystem,” according to Intel.

The tests by Nvidia and Broadcom use Intel's 18A process, a series of technologies and techniques developed over years that can make advanced artificial intelligence processors and other complex chips. The 18A process competes with similar technology from Taiwan's TSMC, which dominates the global chip market.

Testing is underway and can last months. It is unclear when the tests started.

These tests are not being conducted on complete chip designs but are instead aimed at determining the behavior and capabilities of Intel's 18A process. Chip designers sometimes purchase wafers to test specific components of a chip to work out any kinks before committing to producing a full design at high volume.

Besides, manufacturing tests are no assurance that Intel will eventually win new business. Last year, Reuters reported that a batch of Broadcom tests disappointed its executives and engineers.