Intel Corporation recently announced a major collaboration to produce custom artificial intelligence (AI) chips for AWS, Amazon's cloud computing arm. The partnership, which is part of Intel's Foundry Business (IFS), is expected to generate billions of dollars in revenue for Intel over the next few years. The collaboration will leverage Intel's state-of-the-art 18A process technology, an advanced chip manufacturing technology that is expected to go into production in 2025.
Intel CEO Pat · Gelsinger said Amazon is an important customer for Intel's foundry business, and the partnership will bring business to Intel's new factory in the United States and help the company turn around its current woes. In addition, Intel plans to separate its foundry business (IFS) from the rest of the company's business and become a wholly owned subsidiary to attract more customers, especially those that compete with Intel.
This partnership is a huge win for Intel, as it not only brings in huge orders, but also helps Intel be competitive in the AI chip market. As the world's largest cloud service provider, Amazon has a huge demand for high-performance, low-energy customized chips. Intel's partnership is expected to boost AWS's computing capabilities and lay the groundwork for Intel's future growth.
Figure: Intel will customize AI chips for Amazon
In addition, Intel has received support from the United States government through the CHIPS and Science Act to receive up to $3 billion in funding to develop a "secure enclave" microelectronics technology project designed to provide a stable supply of advanced chips for the United States defense and intelligence sector. The funds will be used to support factories in four United States, including a factory in New Albany, Ohio, which Intel has said could become the world's largest chip manufacturing plant.
Ohio Governor Mike DeWine said, "This collaboration between Intel and AWS is a significant development for United States manufacturing and will solidify Ohio's leadership in artificial intelligence. Today's announcement further demonstrates Intel's commitment to United States manufacturing sites like Ohio and AWS's commitment to our nearly decade-long investment in our state.”
AWS and Intel have been working together for more than 18 years to help organizations of all sizes develop, build, and deploy their mission-critical workloads in the cloud, while also enabling them to reduce cost and complexity, improve security, accelerate business outcomes, and scale to meet their current and future computing needs. Going forward, Intel and AWS also intend to explore the possibility of Intel producing more designs based on Intel 18A and future process nodes, including Intel 18AP and Intel 14A, which are expected to be produced at Intel's Ohio facility, as well as the possibility of migrating existing Intel designs to these platforms.
Intel's stock price has risen significantly since the announcement of the partnership, showing a positive market reaction to the partnership. This collaboration is not only significant for Intel's future development, but also has an impact on the global semiconductor industry landscape. With the continuous development of AI technology, the custom AI chip market will usher in more changes, and Intel has demonstrated its determination and potential to re-emerge in the hardware field through its cooperation with Amazon.
