The production process that Intel hoped would pave the way to winning manufacturing deals and restore its edge in churning out high-end, high-margin chips is facing a big hurdle on quality as it puts newer technologies to the test.

Intel is reportedly still struggling with a chipmaking process crucial to its future. Reuters reports that the company's 18A process is still producing low yields and high defect rates. Intel has invested billions of dollars in the manufacturing process, on which it's pinned its hopes of gaining ground on TSMC.

But a Reuters report claims that Intel is struggling to make usable chips on 18A, according to "people who were briefed on the company's test data since late last year." As of this summer, these sources say that just 10 percent of the chips being manufactured on 18A are "up to [Intel's] specifications.