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Thursday, May 23, 2024
HomeTechnology NewsMicrosoft joins forces with Intel to produce its own chips

Microsoft joins forces with Intel to produce its own chips

Intel, best known for its PC processors, is diversifying its activities by offering to manufacture chips designed by other companies such as Taiwan’s TSMC. And the project is moving forward because this custom chip effort has just signed a deal with a large client, Microsoft. In a press release, Intel indicates that Microsoft has selected one of the chips designed to be manufactured internally by Intel through the company’s 18A production technology.

Unfortunately, there are very few details about this chip. However, as Bloomberg points out, Microsoft has already announced production of two chips of its own design: a processor and an artificial intelligence accelerator. In any case, Microsoft has secured a new chip supply source through a contract with Intel at a time when demand is exploding with the emergence of generative artificial intelligence.

Microsoft CEO Satya Nadella explains that achieving Microsoft’s vision requires: “We provide a stable supply of the most advanced, high-performance, high-quality semiconductors.” “This is why we are very excited to collaborate with Intel Foundry and why we have chosen to design our chips for production on the Intel 18A process.”, he added. Additionally, having an in-house designed chip also allows Microsoft to optimize the hardware around its products.

Intel is making a successful transition

The agreement with Microsoft is also a victory for Intel, which is attempting to reinvent itself following the return of Pat Gelsinger. Through its Intel Foundry Services division, the American company wants to provide more chip production capacity to Europe and the United States. And the goal is to become second in the global foundry market by 2030. Therefore, to achieve this goal, Intel must overtake Samsung, which is currently in second place.

But with the rise of AI, the company could easily find a buyer given that the technology is now stimulating the chip market (where Nvidia’s value has exploded).

“AI is fundamentally changing the way we think about the world, technology, and the silicon that powers it.”said Intel CEO Pat Gelsinger. “This creates unprecedented opportunities for the world’s most innovative chip designers and Intel Foundry, the world’s leading systems foundry for the AI ​​era.”

  • Microsoft and Intel sign new agreement Intel’s foundry (a TSMC competitor) will manufacture chips designed by Microsoft.
  • For Microsoft, this deal ensures a stable supply of essential chips for its products and services.
  • For Intel, Microsoft is a big customer for its foundry and it wants to become number two in the world by 2030.

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