Intel scores huge win for its fledgling foundry business

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Foundry Business News

Intel

Intel CEO Pat Gelsinger has landed Amazon Web Services as a customer for the company’s manufacturing business.

has landed Amazon Web Services as a customer for the company’s manufacturing business, potentially bringing work to new plants under construction in the US and boosting his efforts to turn around the embattled chip maker.will co-invest in a custom semiconductor for artificial intelligence computing – what’s known as a fabric chip – in a “multiyear, multibillion-dollar framework”, according to a statement. The work will rely on Intel’s 18A process, an advanced chip-making technology.

The news was part of a flurry of announcements that followed a pivotal board meeting last week. Intel also is postponing new factories in Germany and Poland, but remains committed to its US expansion in Arizona, New Mexico, Oregon and Ohio. Intel also is looking to speed up efforts to execute the $10-billion in cost savings and focus its products better on AI computing, an area where rival Nvidia has excelled.AWS is the largest provider of cloud computing, and it could help build confidence that Intel can compete with the likes of foundry leader TSMC. AWS has used Intel processors over the years but has been shifting more towards in-house designs — the very products that Intel may now help manufacture.

 

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