Microsoft and Intel sign a deal to develop microchips worth more than $15 billion
Kyiv • UNN
Microsoft and Intel have signed a $15 billion deal under which Intel will produce microchips developed by Microsoft.
Under the new agreement, Intel will produce chips developed by Microsoft. This was reported by UNN with reference to The Verge.
Details
Intel estimates that the deal is worth more than $15 billion. The companies did not specify what the chips will be used for. However, Bloomberg notes that Microsoft is planning its own developments for both processors and artificial intelligence accelerators.
We are in the midst of a very exciting platform shift that will fundamentally change the productivity of every single organization and the entire industry
The chips will be manufactured using Intel's 18A process. The company expects that its chip casting services will bring it back to the top of the global production. Microsoft seems to be preparing to become the first major customer for this project.
Context
Relying on the production of other companies' developments is a strategy that has worked well for Intel. Foundry is an important part of the strategy. Recently, Intel postponed the opening of a $20 billion chip plant in Ohio to 2026 - it was originally scheduled for 2025 - citing a slow chip market and delays in government subsidies.