Intel and AWS Expand Collaboration to Advance U.S. Chip Manufacturing

Intel Corporation and Amazon Web Services (AWS) have announced a multi-year, multi-billion-dollar collaboration to advance U.S.-based chip manufacturing and accelerate the development of AI applications. The expanded partnership will see Intel producing custom AI fabric chips on its most advanced process node, Intel 18A, as well as a custom Xeon 6 chip on Intel 3 for AWS. This effort builds on Intel’s ongoing work producing Xeon Scalable processors for AWS, and underscores the two companies' commitment to creating a sustainable domestic AI supply chain.

Strengthening U.S. Manufacturing and AI Ecosystem

As part of this expanded partnership, Intel will produce an AI fabric chip for AWS on the cutting-edge Intel 18A process node, while continuing to develop custom Xeon 6 chips using Intel 3. This marks a significant step forward in their long-standing collaboration, which dates back to 2006 when Intel chips powered the first Amazon EC2 instance. AWS, a leader in cloud and AI infrastructure, will leverage these advancements to enable its customers to run virtually any workload and unlock new AI capabilities.

“This expansion of our longtime relationship with AWS reflects the strength of our process technology and delivers differentiated solutions for customer workloads,” said Pat Gelsinger, Intel CEO. Their collaboration "supports the growth of both businesses as well as a sustainable domestic AI supply chain.”

Matt Garman, CEO of AWS, added, “By co-developing next-generation AI fabric chips on Intel 18A, we continue to empower our joint customers with the ability to run any workload and unlock new AI capabilities." This partnership fuels AWS's mission to deliver the most powerful and innovative cloud infrastructure.

Ohio at the Center of U.S. Semiconductor Manufacturing

Intel and AWS’s collaboration highlights their shared commitment to bolstering U.S. chip manufacturing, with Ohio at the forefront. Intel has been expanding its semiconductor production capabilities in the New Albany area, while AWS has announced a $7.8 billion investment to expand its data center operations in Central Ohio. Since 2015, AWS has invested $10.3 billion in Ohio, reinforcing the state’s role as a leader in the growing AI ecosystem.

“This collaboration between Intel and AWS is a major development for U.S.-based manufacturing and solidifying Ohio as a leader in AI,” said Ohio Governor Mike DeWine. The "announcement furthers Intel’s commitment to U.S. manufacturing sites, like Ohio’s, as well as AWS’s commitment to its nearly decade-long investment in our state.”

Going forward, Intel and AWS intend to explore the potential for additional chip designs on Intel’s advanced nodes, including Intel 18AP and Intel 14A, which will be produced in Ohio’s facilities along with migrating existing Intel designs to these advanced platforms.

Insights on the Collaboration’s Broader Impact

This announcement coincides with Intel’s other major developments, including a $3.5 billion contract awarded by the U.S. government’s CHIPS and Science Fund to manufacture AI chips for military applications. Simultaneously, Intel is adjusting its global operations by pausing a $4.6 billion project in Poland and a $36 billion project in Germany for two years, as well as reducing chip production in Malaysia. These changes are part of Intel Foundry’s broader $10 billion cost-reduction plan, which includes significant layoffs and operational cuts following financial losses in the first half of the year.

Despite these challenges, the collaboration with AWS represents a strategic move to reinvigorate Intel's AI chip-making efforts. Intel’s share price saw a 6% rise after the news broke, signaling market confidence in the partnership’s potential to drive future growth.