Intel Strikes Historic Deal with Microsoft to Create Custom Processors on 18A Intel Node

Continued aftershocks from yesterday’s event were seen as we announced a few hours ago. Earthquakes in the sector have indeed been substantial, as Intel, for the first time, managed to snatch away a giant player like Microsoft from TSMC and Samsung by signing a deal to manufacture their custom SoC on the Intel 18A node. Could Pat Gelsinger be right in claiming that Intel would be the world’s foundry?

IFS began as an independent company separate from the blue team years ago. In certain financial reports, we have already observed the subsidiary’s revenue skyrocketing, and this trend will likely continue after partnering first with Arm and then with Microsoft.

Intel snatches Amazon, Arm, and Microsoft from TSMC for their SoCs in Intel 18A

The shift has been akin to a Netflix movie, as Intel has swiftly taken three chip-design giants away from their main rival. We have already elaborated on Arm’s deal with their Neoverse CSS C3 and N3. Amazon’s shift is not insignificant, but Microsoft’s move points to a whole new level.

Satya Nadella boasted about the agreement, stating:

“We are in the midst of a very exciting platform shift that will fundamentally transform the productivity of every individual organization and the entire industry. To achieve this vision, we need a reliable supply of the most advanced, high-performance, and high-quality semiconductors.

That’s why we’re so excited to work with Intel Foundry and why we’ve chosen a chip design that we plan to develop and produce on the Intel 18A process.”

Nadella’s statements make it clear that they have tested Intel’s node and, after seeing the results, have committed to developing a new platform and SoC that will likely focus on AI and HPC in the cloud.

Is OpenAI involved in this agreement?

Sam Altman shared the stage with Pat Gelsinger, engaging in an intriguing discussion about the future of the semiconductor sector and the important role AI will play. Gelsinger mentioned the term “Siliconomy” during their conversation, which is representative of what he expects from OpenAI and Microsoft:

“It’s simply magical how these small chips enable the modern economic cycle we find ourselves in today.”

It appears that Nadella and Altman are joining forces in this deal with Intel, hoping for the substantial financing that OpenAI’s CEO is trying to raise – a staggering figure of 7 trillion dollars, enough to buy Intel and the world’s 14 largest semiconductor companies.

Perhaps they will start with Microsoft designing chips for Intel to manufacture until they secure the highest possible funding, and then we will see the truth and fiction behind all this. For now, Intel and Microsoft will create custom SoCs for Redmond on the Intel 18A node, a fact that is undoubtedly making TSMC and Samsung nervous.

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