Intel succeeded in making Microsoft a partner in on-demand chip manufacturing, which marks a significant success for the ambitious transformation efforts led by CEO Pat Gelsinger.
Intel is heading towards producing custom chips for Microsoft, designed by the software giant. This production comes as part of a deal worth over $15 billion according to Intel.
Intel announced its partnership during the Intel Foundry event, without specifying the purposes for which the chips will be used by the two companies.
Bloomberg reported that Microsoft had planned internal designs for processing operations and accelerating artificial intelligence.
Satya Nadella, CEO of Microsoft, stated in an official press release: “We are witnessing a significant shift in the platform that will improve productivity methods for each enterprise individually and for the industry as a whole.”
Nadella said: “We need a reliable supply of advanced and high-performance quality semiconductor types, so we are excited to collaborate with Intel.”
Intel uses a manufacturing process known as 18A for chip production, and this process has been a key part of Intel’s strategy since the return of CEO Pat Gelsinger to the company to turn things around.
The company relies on its chip factories’ services to return to the top in the chip industry world, and it seems that Microsoft could be the main client for this project.
Emulating others’ designs has been a successful method for Taiwan-based TSMC in semiconductor manufacturing and competing in the market.
Intel’s plans come at a time when many companies are seeking to manufacture their internally designed chips, despite the challenges Intel is facing.
Intel will delay the opening of a chip plant in Ohio, costing $20 billion, until 2026 due to the chip market slowdown and delayed government funding, although it was originally scheduled to open in 2025, according to previous sources.
