Microsoft Will Use Intel To Manufacture Home-Grown Processor

Intel has landed Microsoft 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. From a report: Microsoft plans to use Intel's 18A manufacturing technology to make a forthcoming chip that the software maker designed in-house, the two companies said at an event Wednesday. They didn't identify the product, but Microsoft recently announced plans for two homegrown chips: a computer processor and an artificial intelligence accelerator. Intel has been seeking to prove it can compete in the foundry market, where companies produce custom chips for clients. It's a major shift for the semiconductor pioneer, which once had the world's most advanced chipmaking facilities and kept them to itself. These days, Intel is racing to catch up with companies like Taiwan Semiconductor Manufacturing Co., which leads the foundry industry. Microsoft, meanwhile, is looking to secure a steady supply of semiconductors to power its data-center operations -- especially as demand for AI grows. Designing its own chips also lets Microsoft fine-tune the products to its specific needs. "We need a reliable supply of the most advanced, high-performance and high-quality semiconductors," Microsoft CEO Satya Nadella said in a statement. aoeThat's why we are so excited to work with Intel."

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