On Monday, the foundry sector of Intel registered Amazon’s cloud services unit as a customer for manufacturing artificial intelligence (AI) chips.
Following the chipmaker’s CEO Pat Gelsinger’s memo to employees, the company’s shares roughly climbed by 8.00% as it secured the e-commerce firm as its customer.
Amazon Web Services (AWS) cloud computing division has designed numerous chips for data center use and hired Intel to secure at least one version. According to sources, the tech firm will produce an AI fabric chip for AWS, utilizing their 18A process, their most advanced model for outside customers.
Moreover, the US corporation aims to use additional designs from Amazon in its coming 18AP and 14A manufacturing processes.
Gelsinger’s memo also highlighted the entity’s measures required to revive itself. Meanwhile, it reported unfortunate second-quarter earnings last month.
Additionally, he and the board agreed they must work to achieve greater efficiency, improve profitability, and accelerate market competitiveness.
Furthermore, Intel is selling a stake in its programmable chip industry Altera, noting that it would pause construction in its German chip factory project and temporarily close its project in Poland.
According to the CEO’s statement, the chipmaker wants to retain its manufacturing business inside the company. This comes amid its crucial contribution to Gelsinger’s turnaround plan for Intel.
Biden Administration Awards $3 Billion to Intel
The Biden Administration awarded Intel $3.00 billion to fund the development of Secure Enclave for microelectronics. The improvements are crucial to various weapon systems and other national security products.
The award advances the administration’s commitment to re-shore semiconductor manufacturing and cutting-edge tech research and development.
Likewise, Biden’s focus on the Secure Enclave emphasizes a broader tactic to boost national security with targeted investments in vital semiconductor manufacturing and development.
Moreover, the award’s initiative aims to ensure a secure supply of microelectronics for defense requirements. It is also made to fulfill the Department of Defense’s need for state-of-the-art microelectronics.
