Intel will produce custom chips designed by Microsoft for Microsoft as part of a deal that Intel says is worth more than $15 billion. Intel announced the partnership today during an Intel Foundry event. Although neither company specified what the chips will be used for, Bloomberg Today pointed out that Microsoft has been planning the internal design of processors and artificial intelligence accelerators.
Microsoft CEO Satya Nadella said in an official press release: “We are in the midst of a very exciting platform shift that will fundamentally transform the productivity of every organization and entire industries. .”
The chips will use Intel’s 18A process, which has been an important part of the company’s roadmap since it hired CEO Pat Gelsinger back to turn things around. The company is counting on its chip foundry services to return it to the forefront of chip manufacturing, and Microsoft appears to be the project’s first major customer.
Relying on producing other people’s designs is a strategy of rival Taiwan Semiconductor Manufacturing Company (TSMC), which has lucrative partnerships with companies including Apple, Qualcomm and AMD.Kissinger told Entrepreneurial Beat Today, the company’s foundries have become an important part of its strategy.
Intel’s new foundry plan comes as more companies seek to produce chips of their own designs, but it still faces challenges. Intel recently delayed the opening of its $20 billion Ohio chip plant until 2026 (originally scheduled for 2025), citing slow growth in the chip market and delays in government funding.
from Tech Empire Solutions https://techempiresolutions.com/microsoft-and-intel-reach-custom-chip-manufacturing-agreement/
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