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Intel Partners with Microsoft for AI Chip Manufacturing
Intel Foundry has reportedly secured a deal with Microsoft to manufacture a next-generation AI chip, utilizing Intel’s 18A process. This partnership could be a pivotal moment for Intel, which has been struggling to establish its foundry business, particularly given the rising demand for AI accelerators and limited manufacturing capacity from competitors like TSMC.
Microsoft is investing significantly in AI, forecasting capital spending to reach $30 billion in Q1 of fiscal 2026, focusing on custom chips that enhance its Azure cloud platform. The commitment to Intel’s 18A process remains unconfirmed in terms of scale and timeline but indicates a possible shift toward Intel as a key player in AI chip manufacturing.
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