Intel will produce custom processors, designed by Microsoft, for Microsoft, as part of a deal that Intel says is worth more than $15 billion.
See also: Intel: Arrow Lake and Lunar Lake processors will be released in the second half of 2024
Intel announced the deal with Microsoft during its Intel Foundry event today. While neither company specified where the processors would be used, Bloomberg noted today that Microsoft has made internal plans for both processors and artificial intelligence accelerators.
In the official announcement, Microsoft CEO Satya Nadellasaid: “We are at the center of a very exciting platform transition that will fundamentally transform productivity for every organization and the entire industry.”
The processors will use Intel's 18A process , which has been a major part of the company's plan since CEO Pat Gelsinger returned to turn things around. The company is relying on chip sourcing services to reclaim the top spot in the chipmaking world, and it looks like Microsoft will be the first major customer for that project.
See also: Intel: Announced new computer chips for artificial intelligence tasks
Microsoft and Intel deal strengthens companies' goals
Relying on the production of others' designs is a driver that has worked well for rival Taiwan Semiconductor Manufacturing Company (TSMC), which has lucrative partnerships with companies like Apple, Qualcomm and AMD.
Intel's new factory designs come as more companies look to produce their own custom chips, but it still faces challenges. Intel recently pushed back the opening of a $20 billion chip factory in Ohio to 2026 — originally planned for 2025 — citing a slow chip market and delays in government subsidies.
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Intel is focused on expanding its leadership in chip manufacturing, investing in the development of innovative technologies and accelerating digital transformation, concluding deals like this one with Microsoft. The company plans to increase its production, investing in new facilities and factories to meet the growing demand for products . In addition, Intel seeks to expand its presence in new areas, such as artificial intelligence, vehicle autonomy and advanced robotics. The company also seeks to strengthen its competitiveness through strategic partnerships and acquisitions, which will allow it to benefit from the capabilities and expertise of other companies in the technology sector.
Source: theverge
