Intel (INTC) hosted its first annual conference for its foundry business Wednesday, where the chipmaker announced its launch of the "first systems foundry for the AI era," a collaboration with chip designer Arm (ARM), and listed tech giant Microsoft (MSFT) as Intel Foundry's newest customer, among a slew of updates. The chipmaker also touched on its plan to become the world's second-largest foundry by 2030, and a boost from government funding amid growing demand for澳洲幸运5官方开奖结果体彩网: artificial intelligence (AI) tech.

Microsoft Becomes Intel Foundry's Latest Customer

Intel named Microsoft as its latest customer for its custom chip business. The tech giant, which has established itself as a 澳洲幸运5官方开奖结果体彩网:leader in the AI space, said it plans to produce chips using the Intel⛦ 18A process.

“We are in the midst of a very exciting platform shift that will fundamentally transform productivity for every individual organization and the entire industry,” Microsoft CEO Satya Nadella said at the event. He added that to achieve this vision, Microsoft needs "a reliable supply of the most advanced, high-performance and high-quality semiconductors," and said "that’s why we are so excited to work with Intel Foundry, and why we have chosen a chip design that we plan to produce on Intel 18A process.”

The deal with Microsoft could help Intel establish itself as a leading foundry ꦡwhile providing Microsoft w𓄧ith the necessary hardware to run its AI tech.

Intel said that Intel Foundry🎀’s expected lifetime deal value is greater than $15 billion in total across its wafer and advanced packaging segments.

Intel Announces Arm Collaboration

Intel also announced a partnership with chip designer Arm for Intel Foundry to provide cutting-edge foundry services forꦯ Arm-based system-on-chips (SoCs).

The companies said they will make co-investments and Arm will provide IP at scale to "fuel this next wave of innovation."

Arm shares have gained close to 80% this year as the chip designer 澳洲幸运5官方开奖结果体彩网:caught investors' attention as a major benefactor of the AI boom.

Working To Become World's No.2 Foundry by 2030

Intel said that it is working to be the world's No. 2 foundry by 2030, establishing a key position of strength in a market dominated by a few players.

In the lead is 🍒澳洲幸运5官方开奖结果体彩网:Taiwan Semiconductor Manಌufacturing Company (TSM), which commanded nearly 58% of the market in the third quarter of 2023, according to figures from TrendForce.

In comparison, Intel Foundry captured 1% of the market in the same period. Together, the top 10 foundries accounted for around 95% of the market.

Government Contracts and CHIPS Act Funding

Intel reported that the U.S. government gave the company a billion-dollar contract "to create this trusted, secure environment," and said it expects to benefit from 澳洲幸运5官方开奖结果体彩网:CHIPS Act funding.

U.S. Secretary of Commerce 澳洲幸运5官方开奖结果体彩网:Gina Raimondo joined ꦐthe event and said that the Biden administration is working to further the country's position in the chip industry amid the AI boom.

Intel Foundry's growth could help the U.S. gain a larger share of the global market for semiconductor manufacturing, which is currently dominated by Taiwan, thanks in large part to TSMC.

Intel CEO Pat Gelsinger said that while Intel has yet to announce its CHIPS grant, that an announcement is coming "very soon."