Danish Kapoor
Danish Kapoor

Intel will produce special chips for Microsoft

Intel announced that they will work on chips designed by Microsoft and produced exclusively for Microsoft. The value of this cooperation is stated to be more than 15 billion dollars. This partnership, announced at the Intel Foundry event held by Intel today, represents an important step for both technology giants. According to Bloomberg’s news yesterday, it is known that Microsoft is planning its own internal designs for both processors and artificial intelligence accelerators, but no details were given about what exactly the chips will be used for.

Strategic partnership from Microsoft and Intel

“We are in the middle of a very exciting platform change,” Microsoft CEO Satya Nadella said in the official press release. “This change will deliver a fundamental productivity transformation for every individual, organization and entire industry.” said.

The chips to be produced will use the 18A manufacturing process, which was a big part of Intel’s roadmap and was brought back by CEO Pat Gelsinger to re-accelerate the company. Intel aims to return to the top of the chipmaking world by relying on its chip manufacturing services, and it looks like Microsoft will be the first major customer for this project.

The strategy of manufacturing other people’s designs had worked well for rival Taiwan Semiconductor Manufacturing Corporation (TSMC), which has profitable partnerships with companies like Apple, Qualcomm and AMD. Gelsinger told VentureBeat on Wednesday that the company’s foundry is a big part of their strategy.

While Intel’s new foundry plans come as more companies turn to producing chips they design themselves, the company still faces challenges. Intel has postponed the opening of its $20 billion US Ohio chip facility planned for 2025 to 2026, citing a slowing chip market and delays in government grants. These developments come at a time when both companies aim to reinforce their leadership in technology and innovation.

Danish Kapoor