Intel and Microsoft Team Up to Lead Semiconductor Innovation

Intel, a big company that makes computer chips in the US, is teaming up with Microsoft. They're joining forces to make really good semiconductors for Microsoft. This is their way of competing with other big companies like TSMC and Samsung, who also make the latest and greatest chips used in artificial intelligence all over the world.

Pat Gelsinger, the head of Intel, says they're working hard to bring chip-making back to the US. Washington is concerned about having top-notch manufacturing here.

Under Gelsinger's leadership, Intel has been changing its focus. They want to become more of a factory for making chips designed by other companies. This is important because more and more people want really advanced chips, especially for new AI technology.

But Intel needs to show that they can handle making these chips just as well as they design them.

One big goal for Intel is to have half of the world's chips made in the US and Europe within the next ten years. Right now, most of them are made in Asia, mostly in Taiwan.

Inside Intel, they're making some big changes to focus more on what customers want. They're splitting into two parts:

1. One to make the chips and
2. One to design them.

Satya Nadella, the boss at Microsoft, says Microsoft is helping Intel become a big name in chip-making. Intel will use something called the 18A node to make a special chip for Microsoft. This node helps make chips smaller and more energy-efficient. Other companies like TSMC and Samsung are also working on similar technology for making really good chips for smartphones, data centers, and AI.

Lots of big companies, including Microsoft, Nvidia, and AMD, are designing these powerful chips for AI technology.

Gelsinger, Intel's boss, wants to make every AI chip in the world through their factory.

Intel is also working with Arm, a chip designer from the UK, even though they use different styles for their chips.

The US government passed a law called the CHIPS and Science Act to give a lot of money ($52.7 billion) for research and making chips in the US.

Understanding the CHIPS and Science Act:

1. The CHIPS and Science Act is a law passed by the 117th United States Congress and signed by President Joe Biden on August 9, 2022.
2. It aims to boost research and manufacturing of semiconductors in the United States.
3. The act provides approximately $280 billion in funding, with $52.7 billion specifically allocated for semiconductor-related initiatives.
4. This includes $39 billion for chip manufacturing subsidies within the US, as well as investment tax credits covering 25% of manufacturing equipment costs.
5. Additionally, $13 billion is allocated for semiconductor research and workforce training programs.
6. The act serves a dual purpose of enhancing American supply chain resilience and addressing competition from China in the semiconductor industry.
7. It also allocates $174 billion to support public sector research in science and technology, benefiting agencies such as NASA, the Department of Energy (DOE), and the National Institute of Standards and Technology (NIST).
8. Recently, the government said they'd give money to GlobalFoundries, a company in California, to make new facilities for making chips for cars, communications, and defense.

Intel is also expecting to get some of this money soon.

Experts say that with more companies needing lots of computer chips for AI technology, the demand for these chips will keep growing fast in the coming years.