Microsoft CEO Says Company’s New Chip Will Use Intel Foundry

Microsoft will use Intel to make one of its upcoming chips.

On Wednesday, Microsoft CEO Satya Nadella announced the software firm will use the Intel 18A process to manufacture a future Microsoft chip.

“We are in the midst of a very exciting platform shift that will fundamentally transform productivity for every individual organization, and the entire industry,” Nadella said at the Intel Foundry event. “To achieve this vision, we need a reliable supply of the most advanced, high-performance and high-quality semiconductors. That’s why we are so excited to work with Intel Foundry, and why we have chosen a chip design that we plan to produce on Intel 18A process.”

Intel has said that its 18A chip-manufacturing process will be industry leading in terms of performance in 2025. Nadella didn’t reveal additional details on the chip’s end uses or a time frame for release.

Pat Gelsinger, who became Intel’s CEO in 2021, has prioritized Intel Foundry’s business as the key component of his turnaround plan. The goal is to provide an alternative to Taiwan Semiconductor Manufacturing, better known as TSMC, which currently dominates the global semiconductor market for making advanced chips.

In midday trading Wednesday, Intel stock fell 1.6% to $43.81, while Microsoft stock was down 0.9% to $399.32.

Write to Tae Kim at [email protected]