Intel Corp. has landed Microsoft Corp. as a customer for its made-to-order chip business, marking a key win for an ambitious turnaround effort under Chief Executive Officer Pat Gelsinger.<\/p>\n
Microsoft plans to use Intel\u2019s 18A manufacturing technology to make a forthcoming chip that the software maker designed in-house, the two companies said at an event Wednesday.<\/p>\n
They didn\u2019t identify the product, but Microsoft recently announced plans for two homegrown chips: a computer processor and an artificial intelligence accelerator.<\/p>\n
Intel has been seeking to prove it can compete in the foundry market, where companies produce custom chips for clients.<\/p>\n
It\u2019s a major shift for the semiconductor pioneer, which once had the world\u2019s most advanced chipmaking facilities and kept them to itself.<\/p>\n
These days, Intel is racing to catch up with companies like Taiwan Semiconductor Manufacturing Co., which leads the foundry industry.<\/p>\n
Microsoft, meanwhile, is looking to secure a steady supply of semiconductors to power its data-center operations \u2014 especially as demand for AI grows. Designing its own chips also lets Microsoft fine-tune the products to its specific needs.<\/p>\n
\u201cWe need a reliable supply of the most advanced, high-performance and high-quality semiconductors,\u201d Microsoft CEO Satya Nadella said in a statement. \u201cThat\u2019s why we are so excited to work with Intel.\u201d<\/p>\n
The broader industry has struggled to get enough advanced silicon \u2014 particularly Nvidia Corp.\u2019s highly prized accelerator chips, which help develop chatbots and other AI services.<\/p>\n
For Intel, securing a large customer for its foundry business should help reassure investors that Gelsinger\u2019s comeback bid remains on track. His plan involves building out the chipmaker\u2019s factory operations to handle the increased load \u2014 a costly gamble \u2014 as well as restoring Intel\u2019s once-dominant technological prowess.<\/p>\n