US-based chip manufacturer Intel and tech giant Microsoft have disclosed a collaboration to develop high-end semiconductors, aiming to rival industry leaders like TSMC and Samsung in supplying advanced silicon for artificial intelligence applications globally.
During a recent corporate event, Intel’s CEO Pat Gelsinger outlined the company’s ambition to revitalize manufacturing in the West, driven partly by geopolitical considerations urging the return of cutting-edge production to the US.
Under Gelsinger’s leadership for the past three years, Intel has been transitioning towards a foundry model, focusing on producing chips for external clients while enhancing its capabilities in manufacturing top-tier semiconductors crucial for the burgeoning field of generative AI.
To establish credibility with clients, Intel must assure them of the same quality standards for externally manufactured chips as those it designs in-house.
Intel’s strategic objective is to elevate the US and Europe’s combined semiconductor production to 50% within the next decade, up from the current 20%, countering the dominance of Asian countries, particularly Taiwan, in semiconductor fabrication.
Emphasizing a customer-centric approach, Gelsinger announced the restructuring of Intel into two distinct units: Intel Foundry for semiconductor manufacturing and Intel Products for chip design, with the company already securing foundry contracts valued at $15 billion.
Microsoft’s CEO Satya Nadella expressed support for Intel’s aspiration to become a key player in the global chip market. Intel is slated to manufacture a Microsoft-designed chip utilizing its advanced 18A node technology.
Intel’s 18A node process focuses on shrinking semiconductor size and enhancing energy efficiency, aligning with efforts by TSMC and Samsung to develop cutting-edge chips for various applications such as smartphones, data centers, and AI.
Intel aims to be the premier manufacturer for AI chips across the industry, including those based on Arm’s architecture. A collaboration with Arm was announced during the event, highlighting Intel’s X86 architecture as a competitor to Arm’s design.
The recent Chips Act legislation in the US, allocating \(52.7 billion for semiconductor research and development, underscores the government’s commitment to bolstering domestic chip production. GlobalFoundries, based in California, is set to receive \)1.5 billion for expanding semiconductor manufacturing capabilities.
Intel anticipates its own federal grant under the Chips Act to be revealed shortly, aligning with the industry’s escalating demand for cutting-edge chips to power AI and other advanced technologies.
US Commerce Secretary Gina Raimondo praised Intel as a pivotal player in the semiconductor sector, emphasizing the critical role of advanced chips in fueling innovation and economic growth.
