Intel has won Microsoft as a customer for its custom chip business, a key victory for its ambitious turnaround effort under CEO Pat Gelsinger. From the report: Microsoft plans to use Intel's 18A manufacturing technology to manufacture the software maker's next generation of chips designed in-house, the companies announced at an event Wednesday. Although they did not specify the products, Microsoft recently announced plans for two of its own chips: a computer processor and an artificial intelligence accelerator.
Intel has been trying to prove that it can compete in the foundry market, where companies make custom chips for customers. This is a major change for Semiconductor Pioneer, which once owned the world's most advanced chip manufacturing equipment and kept it in-house. Recently, Intel has been racing to catch up with companies such as Taiwan Semiconductor Manufacturing Co., which leads the foundry industry. Meanwhile, Microsoft is trying to secure a steady supply of semiconductors to power its data center operations, especially as demand for AI grows. Designing its own chips also allows Microsoft to fine-tune its products to suit specific needs. “We need a reliable supply of cutting-edge, high-performance, high-quality semiconductors,” Microsoft CEO Satya Nadella said in a statement. That's why we're so excited to be working with Intel. ”
