Intel announced it will start producing chips designed by and for Microsoft.
As noted by The Verge, Intel says the deal has a lifetime value of over $15 billion USD (about $20.26 billion CAD). Neither company has shared what the chips would be used for, but Bloomberg reports that Microsoft has been planning design for both processors and AI accelerators.
What we do know is that the Microsoft-designed chips will use Intel’s 18A process, a significant part of the company’s multi-year roadmap. Since bringing back CEO Pat Gelsinger to turn things around, Intel has pinned hopes on 18A (a 1.8nm fabrication) as the process that will return the company to its leadership position. Gelsinger previously said 18A would be slightly ahead of TSMC’s 2nm N2 process. Getting Microsoft on board seems like a major win for Intel and possibly a sign that 18A could be all that — but we’ll see what happens next.
Either way, Intel is borrowing a page from TSMC’s playbook by producing designs for other companies. That’s worked well for TSMC, which currently has partnerships with Apple, Qualcomm, AMD and more. Apple and AMD have made impressive gains against Intel chips in recent years. Intel’s foundry plans are a major part of its strategy to win back that lost ground.
