Intel Ambitious To Shift TSMC As The Advanced Chip King, Microsoft Becomes A Strategic Partner

CEO of Intel Pat Gelsinger. (photo: x @intel)

JAKARTA - Intel announced plans to reclaim the position of the world's fastest chipmaker from its main rival, TSMC this year. This was conveyed at the Intel Foundry technology conference in San Jose, California.

Intel intends to use 18A technology to produce the fastest chips, followed by 14A technology by 2026. In addition, the technology giant from the United States also announced a strategic partnership with Microsoft that will use 18A technology to produce special chips.

This move marks Intel's ambition to return to being a leader in the chip manufacturing industry. For decades, Intel has been producing chips only for internal needs and using its advantages in manufacturing to create an innovation cycle. However, when it loses manufacturing advantage, Intel's chip competitiveness decreases and profit margin shrinks.

To catch up, Intel is now dependent on the potential of billions of dollars in subsidies by the US government and businesses from external customers. One of the strategies it relies on is the advantage in terms of geography, by having cutting-edge factories on various continents.

"This is a echoing selling attraction right now. People want that," said Stu Pann, executive who oversees Intel Foundry, regarding the company's geographic advantage.

Apart from Microsoft, Intel has also hooked up four other "big customers" for 18A technology, but their identities have not been mentioned. The company also partners with Arm Holdings and well-known universities to develop its technology.

Analysts assess that Intel's efforts to attract external subscribers are key to their recovery plan. However, its success could only be seen in the next two to three years.