Intel and AMD have always been fierce competitors in the processor market. However, recent news from Intel CEO Pat Gelsinger suggests a new direction for the company. Gelsinger revealed that Intel’s foundries are open to manufacturing chips for major tech companies, including its rival AMD.
During the Intel Foundry Direct Connect event in San Jose, California, Gelsinger discussed the company’s new fab operations, aiming to establish a “more sustainable system foundry business designed for the AI era.” Intel is set on surpassing its rival TSMC in advanced chip manufacturing by 2025 and has already announced plans to manufacture some of the world’s fastest chips using its Intel 18A manufacturing technology.
Microsoft is among Intel’s first big clients, with plans to manufacture a chip based on Intel’s 18A process. Intel’s hopes to expand its client base are evident in its optimistic target of $15 billion worth of orders in its foundry, up from the initial $10 billion estimate. Notably, Intel’s aspirations also extend to its competition, hoping to work with industry giants like Nvidia, Qualcomm, and Google, representing a significant shift from its previous business model.
Intel has made it clear that the foundry business is a separate venture from its product teams. According to Gelsinger, the foundry’s objective is to cater to a wide array of customers and become a global leader in chip manufacturing. This strategy indicates a significant departure from traditional practices and could potentially redefine the landscape of the semiconductor industry.
Indeed, Intel’s commitment to diversity in its client base suggests a radical shift in the company’s approach. By expressing its willingness to work with competitors, Intel is signaling an era of collaboration and openness that has the potential to transform the industry as we know it.
