Intel has aligned with Amazon Web Services (AWS) to fabricate semiconductors specifically designed for AI applications. This collaboration, labeled as a “multiyear, multibillion-dollar framework,” will focus on creating a unique “fabric chip” utilizing Intel's 18A process.
Boost to U.S. Manufacturing Efforts
The partnership is expected to substantially impact Intel's manufacturing endeavors, especially with new facilities being constructed in the United States. Intel's chief executive, Pat Gelsinger, says in a blog post that the collaboration as a crucial step to revitalize the company's manufacturing footprint and reinforce its status within the semiconductor industry. It aligns with Intel's broader goal of enhancing production capabilities and securing partnerships with key clients.
The development of these custom semiconductors targets improvements in AI computing horsepower, responding to the growing demand for more sophisticated hardware in the AI sector. By working with AWS, Intel aims to consolidate its position as a mainstay in chip technology.
Intel's alliance is also seen as a strategic maneuver to address obstacles the company has confronted, potentially reclaiming competitive standing. Industry observers suggest this might catalyze future alliances between notable tech enterprises and semiconductor manufacturers, potentially shaping AI hardware advancements.
Manufacturing Deal Specifics
Intel Foundry's role will include crafting an AI fabric chip for AWS using the Intel 18A process and a custom Xeon 6 chip with Intel 3, extending their current collaborations where Intel provides Xeon Scalable processors to AWS. In the same announcement, Intel also announced that its Foundry will now be a separate entity.
Concurrently, Intel has chosen to postpone expansions in Germany and Poland by roughly two years, in line with market forecasts, while sustaining its primary European operations in Ireland and continuing U.S. projects in locations such as Arizona, Oregon, New Mexico, and Ohio.
