What you need to know
- Intel's first foundry service clients will be Amazon and Qualcomm.
- Amazon will get help with its data centers, while Qualcomm will use Intel's service to build chips.
- Intel announced that it would make chips for other companies back in March 2021.
Intel announced that Amazon and Qualcomm will be the first companies to use its new foundry services. The company will provide services to improve data center infrastructure for Amazon. It will also work with Qualcomm to manufacture processors.
Intel outlined how it will work with Amazon and Qualcomm at its Intel Accelerated event this week. At the event, Intel CEO Pat Gelsinger said that "IFS (Intel Foundry Services) is off to the races."
When Intel explained that it would make chips for other companies, it was massive news within the processor industry. Intel hopes to compete with the likes of TSMC and Samsung as a contract chip manufacturer.
In addition to discussing how it will work with Amazon and Qualcomm, Intel detailed its roadmap through 2025 at this year's Intel Accelerated event.
Qualcomm creates processors used in many smartphones, including most flagship Android devices. Windows 10 on ARM and Windows 11 on ARM PCs like the Surface Pro X also use chips from Qualcomm. At the moment, Qualcomm uses several foundries to create its CPUs and other components. Intel will be part of that process in the future.
Intel's upcoming 20A process node that will arrive in 2024 appears to have intrigued Qualcomm. Intel did not share which products it will make for Qualcomm that use the new technology.
By working with its rivals, Intel is able to expand into a new market. It can also be involved in the creation of many more devices. While it's not clear which Qualcomm devices Intel will produce chips for, the potential reach of a partnership between Qualcomm and Intel is sizeable.
