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Intel strikes foundry deal with AWS

In a very big win for its foundry business, Intel announced it has signed a multi-year, multi-billion-dollar deal with AWS to co-develop an “AI fabric chip” using Intel’s 18A chip fabrication process. Intel also agreed to produce a custom Xeon 6 processor for AWS as part of an existing deal between the two firms. The custom Xeon 6 CPUs for AWS will use the Intel 3 manufacturing process, which is what Intel uses now to produce Xeon Scalable processors for AWS.
“We have tripled our deal pipeline since the beginning of the year,” CEO Pat Gelsinger said of Intel Foundry’s business in a blog post, noting that the AWS deal could potentially involve additional chip designs.
In addition, Intel has received $3 billion in funding under the CHIPS and Science Act for the U.S. government’s Secure Enclave program. “This program is designed to expand the trusted manufacturing of leading-edge semiconductors for the U.S. government. As the only American company that both designs and manufactures leading-edge logic chips, we will help secure the domestic chip supply chain,” Gelsinger wrote.