Intel will produce custom chips designed by and for Microsoft as part of a deal said to be worth more than $15 billion. Intel announced Announcement of partnership at today’s Intel Foundry event. Neither company has disclosed the intended use of the chip, but bloomberg pointed out today Microsoft reportedly plans to design both the processor and AI accelerator in-house.
“We are in the midst of an incredibly exciting platform shift that will fundamentally change productivity for every individual organization and entire industry,” Microsoft CEO Satya Nadella said in an official press release. states.
The chip uses Intel’s 18A process, which has been a big part of the company’s roadmap since the company brought back CEO Pat Gelsinger to turn things around. The company is looking to chip foundry services to return to the top of the chip manufacturing world, and Microsoft appears to be the project’s first major customer.
Relying on the production of other companies’ designs is a strategy that has worked well for competitor Taiwan Semiconductor Manufacturing Company (TSMC), which has lucrative partnerships with companies such as Apple, Qualcomm, and AMD.gelsinger Said venture beat today The company’s foundry is a big part of its strategy.
Intel’s new foundry plan comes as more companies seek to produce chips they design themselves, but they still face challenges. Intel recently delayed the opening of its $20 billion Ohio chip factory to 2026 (originally scheduled for 2025), citing a weak chip market and delays in government subsidies.
