On Wednesday, Intel announced that Microsoft intends to employ its services to produce customized computing chips. The company was given an internal target of 2025 to overtake its biggest rival, Taiwan Semiconductor Manufacturing Company, in the production of sophisticated processors. has contributed. As. Expected to cross the border.
The US chip maker also provided new information on how it plans to maintain its lead over TSMC in 2026 and beyond.
Intel made the revelation at an event in San Jose, Calif., at the first technology conference for Intel Foundry, the contract manufacturing operation set up to compete with TSMC.
Referring to it as Intel 18A manufacturing technology, Intel intends to reclaim the title of maker of the fastest chips in the world from TSMC later this year. By 2026, it will replace that lead with a new technology called Intel 14A. Will change.
It said Microsoft will use its 18A technology to make an undisclosed chip and now expects foundry orders worth $15 billion, up from the $10 billion the company had previously told investors.
Beyond what its CEO C.C. Wei stated at the business’s most recent investor presentation in January, TSMC stated that it had “no comment on the competitiveness of our advanced technologies”.
TSMC’s Taipei-listed stock has jumped almost 17% so far this year due to its dominance in producing the kinds of advanced chips used in AI applications by companies like Nvidia.
The Silicon Valley corporation has not yet provided any information about its plans beyond 2025 with the announcement of 14A technology. When Pat Gelsinger took over as CEO of Intel three years ago, he aimed to return to the top spot in the chip industry.
Intel used its manufacturing dominance to create a cycle in which it produced chips with industry-leading performance and charged a premium for them for decades, all the while making chips exclusively for itself. These margins, in turn, supported the manufacturing industry. However, Intel’s chips became less competitive and its margins declined as it lost its manufacturing dominance, making it harder to find finance for a manufacturing comeback.
To help it get back on track, Intel is now depending on possibly billions of dollars in subsidies from the US government as well as business from external clients.
It is expected that some customers will be attracted by its long history of operating state-of-the-art factories on multiple continents, particularly those concerned about TSMC’s practice of maintaining its most advanced factories in Taiwan.
Regarding the company’s geographic diversity, Stu Pan, the executive in charge of the Intel foundry, commented, “It’s a sales pitch that’s resonating right now.” “People are interested in it.”
Although it has not disclosed their names, Intel claims that four “big” customers have signed up for its 18A manufacturing process. It is unknown whether Microsoft is one of those economically important customers.
On Wednesday, Intel announced a partnership with Arm Holdings to facilitate the production of chips using Arm technologies at Intel’s factories. Additionally, Intel said it will collaborate with the Universities of Michigan and California Berkeley to provide students access to its 18A manufacturing technology.
Additionally, according to analysts, Intel has a unique technology that will help speed up artificial intelligence chips that consume a lot of power. Nvidia, the market leader in AI chips, has said it is assessing Intel’s manufacturing technology; However, no agreement has been made public by the two businesses.
“Intel’s effort to woo outside customers is key to the turnaround story,” said Ben Bajarin, chief executive of consulting firm Creative Strategies.
“Unfortunately, this is an unanswered question, because we need to follow the journey for two to three years before we know whether it is working or not.”