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Microsoft strikes multi-billion dollar custom chip deal with Intel
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Microsoft has struck a potentially lucrative deal with Intel to have the latter make various custom chip designs for the tech giant.
Intelannouncedthe deal at its Intel Foundry event, confirming that “Microsoft has chosen a chip design it plans to produce on the Intel 18A process”. The partnership could prove to be worth more than $15 billion over the life of the deal.
Microsoft, for its part, hasn’t mentioned any specifics as to what these custom-design chips might be used for. Microsoft Chairman and CEO Satya Nadella referenced “a reliable supply of the most advanced, high-performance and high-quality semiconductors” to power a “very exciting platform shift that will fundamentally transform productivity for every individual organization and the entire industry”.
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According toBloomberg, Microsoft is looking to provide in-house solutions for both regular processors and AI accelerators.
Intel’s ultimate aim is to retake its position at the top of the advanced chip making tree. It plans to overtake key rival Taiwan Semiconductor Manufacturing Co (TSMC), in advanced chip manufacturing in 2025.
Indeed, in adopting this model of building chips to other companies’ designs, rather than simply making its own chips and selling them on as we’ve seen in theBest Intel processorsof the past, Intel can be said to have adopting the TSMC model. The Taiwanese chip giant makes chips to order for the likes of Apple and Qualcomm, which has helped it become the biggest in the game.
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Jon is a seasoned freelance writer who started covering games and apps in 2007 before expanding into smartphones and consumer tech, dabbling in lifestyle and media coverage along the way. Besides bein…
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Founded in 2003, Trusted Reviews exists to give our readers thorough, unbiased and independent advice on what to buy.
Today, we have millions of users a month from around the world, and assess more than 1,000 products a year.
Editorial independence means being able to give an unbiased verdict about a product or company, with the avoidance of conflicts of interest. To ensure this is possible, every member of the editorial staff follows a clear code of conduct.
We also expect our journalists to follow clear ethical standards in their work. Our staff members must strive for honesty and accuracy in everything they do. We follow the IPSO Editors’ code of practice to underpin these standards.
