In a recent announcement, Intel has revealed it will produce chips for Amazon Web Services (AWS) using its advanced 18A manufacturing process. Additionally, the company will create specialized Intel Xeon CPUs on the Intel 3 node. While it is not clear which specific chip will be made using the 18A process, it is expected to be custom hardware developed for Amazon. Both Intel and Amazon are planning to establish operations in Ohio, where Amazon intends to invest an extra $7.8 billion, building on the $10.3 billion it has already invested since 2015.
Collaboration Highlights
Matt Garman, CEO of AWS, stated, "By co-developing next-generation AI fabric chips on Intel 18A, we continue our long-standing collaboration, which began in 2006 when we introduced the first Amazon EC2 instance featuring their technology. Our ongoing partnership enables us to provide our shared customers with the capacity to manage any workload and unlock new AI possibilities."
This news follows Intel's recent acquisition of a $3 billion contract from the U.S. Department of Defense for the production of military-grade semiconductors. The 18A process, which is a significant advancement in the industry, offers backside power delivery, enhancing chip performance.
Future Prospects
Although Broadcom has yet to express enthusiasm for the Intel 18A technology, it has shown improvement and is likely to attract more Intel Foundry clients, potentially including Arm, in the near future. Intel's internal Panther Lake and Clearwater Forest CPUs have already been successfully tested on this node, with production yields reportedly on the rise after initial challenges.
Intel's partnerships with AWS and the Department of Defense are crucial for the company, especially in light of falling stock prices, controversies surrounding CPU performance, and a missed $30 billion opportunity related to chip manufacturing for the PlayStation 6. The increased adoption of the 18A process will also assist Intel in building an intellectual property library and ecosystem around its inaugural public node, encouraging other companies to turn to Intel Foundry for their chip production needs.
