Chasing the Chipmaking Dream

In a major boost to its chip-making business, Intel has partnered with Amazon Web Services (AWS) to develop a custom AI fabric chip. The deal, announced by Intel CEO Pat Gelsinger, is part of the chipmaker's attempt to play catch-up in a rapidly changing market. With the partnership, Intel will produce AI fabric chips for AWS on its 18A technology.

Intel's struggles to keep up with the mobile computing wave have led to a decline in its market value, surpassed by Qualcomm and Texas Instruments. However, the company is trying to make a comeback by building a world-class foundry business. The deal with AWS, along with a $3 billion grant from the US government to boost domestic chip making, demonstrates Intel's continued progress towards this goal. The partnership is a major coup for Intel, which has been working to build its foundry business. The company is expanding its operations in the US, with new plants being built in Arizona, Oregon, New Mexico, and Ohio. However, Intel is pausing its production in Germany and Poland for about two years.

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