Key Insight:
Intel Foundry has secured a landmark contract to manufacture Microsoft’s next-generation Maia 2 AI accelerator chips using its advanced 18A process technology. This multi-billion-dollar deal, valued at over $15 billion in lifetime revenue potential, signifies Microsoft’s strategic move to diversify its AI chip supply chain with a U.S.-based, cutting-edge semiconductor foundry. Supply Chain Diversification: Microsoft’s move to Intel for manufacturing Maia 2 reduces reliance on Asia-based foundries, aligning with geopolitical and supply resilience priorities.
Background:
Intel announced the partnership with Microsoft in early 2024 but kept details under wraps until now. Microsoft’s Maia 2 chips, designed for Azure cloud infrastructure, represent a progression from its original Maia 100 processor made by TSMC. Intel’s 18A process, featuring cutting-edge RibbonFET transistors and PowerVia power delivery, started production recently in Fab 52, Arizona. The process delivers over 15% performance gains and up to 38% power savings compared to previous nodes. The collaboration marks Intel’s most significant foundry win as it challenges TSMC’s dominance. Intel has officially confirmed securing this pivotal deal in October 2025, marking a transition from initial announcement in early 2024 to concrete production and market validation. The recent announcement underscores Intel’s successful ramp-up of its 18A foundry technology to volume production, validated by Microsoft’s choice to manufacture its next-generation AI chips at Intel’s U.S.-based facilities. This confirmation after months of speculation signals a major milestone in the competitive AI semiconductor landscape, with large-scale production set to begin soon, impacting supply chain strategies and industry dynamics moving forward.
Credit perplexity
https://www.perplexity.ai/page/intel-wins-microsoft-as-major-fIGJTLQiRxKdJepxNbfHlw