Microsoft signs with Intel to produce its own chips

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Best known for its PC processors, Intel is diversifying its activities by offering to manufacture chips designed by other companies, such as the Taiwanese TSMC. And the project is moving forward, since this custom chip activity has just signed with a very large client: Microsoft. In a press release, Intel indicates that Microsoft has chosen to have one of its chips designed internally manufactured at Intel, via the company's 18A production technology.

Unfortunately, we have few details on these chips. But as Bloomberg points out, Microsoft has already announced the production of two chips designed in-house: a processor and an artificial intelligence accelerator. In any case, by signing with Intel, Microsoft is securing a new source of supply for chips, at a time when demand is exploding with the emergence of generative artificial intelligence.

Microsoft CEO Satya Nadella explains that to achieve its vision, Microsoft needs “a reliable supply of the most advanced, high-performance, high-quality semiconductors.” “That's why we're so excited to work with Intel Foundry and why we've chosen a chip design that we plan to produce on the Intel 18A process”, he added. Furthermore, using chips designed in-house also allows Microsoft to optimize the hardware in relation to its products.

Intel is successfully pivoting

The signing of a contract with Microsoft is also a victory for Intel which, after the return of Pat Gelsinger, is trying to reinvent itself. With its Intel Foundry Services division, the American company wants to provide more chip production capacity to Europe and the United States. And its goal is to become the number 2 foundry on the global market by 2030. To achieve this goal, Intel will therefore have to overtake Samsung, which is the current number 2.

But, with the emergence of AI, the company should easily find a buyer, given that this technology is currently stimulating the chip market (which has caused Nvidia's valuation to explode) .

“AI is profoundly transforming the world and the way we think about technology and the silicon that powers it. powers”, declared Pat Gelsinger, CEO of Intel. “This creates an unprecedented opportunity for the world's most innovative chip designers and for Intel Foundry, the world's premier systems foundry for the era of technology. #8217;AI.”

• Microsoft and Intel sign a new agreement: the Intel foundry (TSMC competitor) will manufacture chips designed by Microsoft
• For Microsoft, this deal ensures a reliable supply of essential chips for its products and services
• For Intel, Microsoft is a major customer of its foundry, which it wants to position as world number 2 by 2030

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