Intel announced its initiative to establish the premier AI Systems Foundry tailored for the artificial intelligence era on Wednesday, revealing that it has incorporated Microsoft as a client for its cutting-edge chip production technology. Despite this announcement, Intel’s stock experienced a decline.
During a customer event in San Jose, California, Intel’s CEO, Pat Gelsinger, presented the main ecosystem collaborators involved in the Intel Foundry project. These partners include Cadence Design Systems, Siemens, Synopsys, and Ansys, which is in the process of being acquired by Synopsys.
These organizations will supply design tools and intellectual property collections to assist Intel Foundry clients in developing their computing infrastructures.
Gelsinger highlighted the transformative impact of AI on the global landscape and the technology sector, emphasizing the unique opportunity this presents for leading chip designers and for Intel Foundry as the inaugural systems foundry of the AI age. He expressed confidence in the collaborative potential to spawn new markets and radically enhance global technological usage for the betterment of society.
Intel has set its sights on becoming the second-largest foundry by 2030, with Taiwan Semiconductor Manufacturing currently leading the contract chip manufacturing industry.
Following the announcement, which included the partnership with Microsoft—bringing the total value of deals for Intel’s foundry business to $15 billion, as stated by Gelsinger—Intel’s stock dropped by 2.4%, closing at $43.47.
Microsoft plans to utilize Intel’s 18A process technology for a forthcoming chip, aligning with Intel’s ambition to progress through five technology nodes within four years. Gelsinger assured continued rapid development, aiming for industry leadership with the 14A technology, which features 1.4-nanometer circuit widths, later this decade.
The anticipation for federal government funding under the U.S. CHIPS and Science Act may have contributed to investor disappointment, despite Gelsinger’s assurance of an impending announcement.
Furthermore, Intel disclosed a partnership with Arm Holdings to offer foundry services to startups developing Arm-based system-on-chips, offering these emerging companies technological, manufacturing, and financial support.
