Intel foundry business to make custom chip for Amazon, chipmaker's shares jump

Intel's shares jumped after the company announced a multibillion-dollar deal with Amazon's AWS division. Intel will produce an "artificial intelligence fabric chip" for AWS using its most advanced 18A manufacturing process. To revive its business, Intel is selling a stake in its Altera programmable chip unit and pausing construction on chip factory projects in Germany and Poland. Intel plans to establish its foundry business as an independent subsidiary with greater autonomy. The company also received $3 billion in funding from the U.S. CHIPS and Science Act and plans to lay off around 15,000 employees.

Intel announced a multibillion-dollar deal with Amazon's AWS division.
Intel will produce an artificial intelligence fabric chip for AWS using its 18A manufacturing process.
Intel is selling a stake in its Altera programmable chip unit and pausing construction on chip factory projects in Germany and Poland.
Intel plans to establish its foundry business as an independent subsidiary.
The company plans to lay off around 15,000 employees.

Intel's shares experienced a significant increase following the announcement of a multibillion-dollar deal with Amazon's AWS division, where Intel will manufacture an artificial intelligence fabric chip utilizing its advanced 18A manufacturing process. In an effort to revitalize its business, Intel is also divesting a stake in its Altera programmable chip unit and has decided to pause construction on chip factory projects located in Germany and Poland. Furthermore, the company is planning to establish its foundry business as an independent subsidiary to enhance its operational autonomy. As part of its restructuring efforts, Intel has announced plans to lay off approximately 15,000 employees, alongside receiving $3 billion in funding from the U.S. CHIPS and Science Act.

Intel has entered a multibillion-dollar agreement with Amazon's AWS to produce an artificial intelligence fabric chip, while also restructuring its business and planning significant layoffs.

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Intel Announces Deal with Amazon AWS

9/16/2024

[0]Reuters

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