Intel's Agreement with Amazon Web Service
On Monday,16th September CEO Pat Gelsinger announced Intel's deal with the Amazon Web service (AWS) . According to the deal Intel will build custom chips powered with artificial intelligence( AI) Amazon's cloud business. This will surely strengthen their long term partnership between two companies. In an interview CEO will singer express that it is a great news for them to have the deal with Amazon. Intel will utilise 18 a process which is an advance ship making technology. After the announcement Intel corp shares rises on Tuesday. It can bring good hopes for the company as well as investors.
Intel's foundry business will be transformed into subsidiary company with independent directors, said CEO. Their foundry business is semiconductor manufacturing. He said that they will keep proper differentiation between design and manufacturing business which will ensure teams engaged in the design will not have access to their chips. This will surely provide confidence to their customers.
On Monday, Intel also announced that a funding of 3 billion dollar from US government was awarded for the military for advance chip manufacturing. This will have US government technology system with advancement of cutting edge solution. This deal will be utilise to provide solution for the military purpose of the US government in terms of improving and providing better security and steady supply of advance chips for defence and intelligence purpose. This deal will surely improve domestic supply chain of chips.
Projects that were going on in Poland and Germany Put on hold as there is doubt in clarity of getting subsidies from the Government of Germany for the setup of two plants.The chip maker Intel also wanting to shift their focus to the products based on AI computing as it is the new demands across the world of smart devices. Keeping that intention in mind intel is looking to speed up education UP 10 billion dollar in coast saving. This maybe a good strategic step taken by the Intel in order to down their cost and focusing on product based on AI computing.
Boost in Intc stock!!
Intel is trying hard to recovery recover it's market share, for that in tennis making chips for itself as well as third party companies. Recent collaboration with Amazon seems to be a good steps to boost business in chip making and increasing market share. Intel will have operating guidelines and independence both members which will be fully transparent, said by Intel. As per some source it is said that intel's foundry business will be more open to having outside sources of funding and raising capital to to keep their focus on manufacturing business. Moreover Intel is also focusing on playing a major role in geopolitical aspect with manufacturing of cutting edge technology for the defence system of US. To beat the competition facing by the Intel with AMD and Nvidia, Intel have planned to launch a new GPU in 2025 .
Competition faced by Intel
Intel's processor that power laptops and desktop around the world is still market share that collects revenue for the company. Recently the market share declined due to the competition in the market because of the rival company AMD and Qualcomm which also entering to the business of manufacturing ships for PCs. To fight back the competition recently this month month Intel has launched it's Corel ultra 200 V processor who is his named as Lunar Lake based on AI features which is the present demand for the generation specially for content creators. Intel hopes to combat it's competition by focusing on AI computing chipset manufacture.
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