Intel and Microsoft forge alliance to mass produce 1.8nm chip

On Wednesday, Intel unveiled its ambitious plan to collaborate with Microsoft in manufacturing 1.8nm chips by the end of 2024, with the ultimate goal of surpassing Samsung Electronics and becoming the world’s second-largest chipmaker through the successful production of 1.4nm chips by 2027. Should Intel successfully manufacture 1.8nm chips by the end of 2024, it is poised to outpace both Samsung Electronics and TSMC, which announced their plan to mass produce 2nm semiconductors by 2025.

This announcement was made during the Intel Foundry Service (IFS) Direct Connect 2024 event in San Jose, California. Unlike previous industry skepticism surrounding Intel’s plans, this time the venture carries more weight, as Microsoft, a prominent AI company, has already placed an order for Intel’s 1.8nm chips.

The U.S. government expressed its support for Intel’s endeavor, with Secretary of Commerce Gina Raimondo attending the event and affirming Intel’s role in the country’s technological revitalization. “Intel is an American champion company and has a significant role in this revitalization,” stated the Commerce Secretary. She emphasized that the U.S. would need a second CHIPS Act to lead the global semiconductor industry.

Samsung Electronics plans to introduce a 2nm process in 2024 and a 1.4nm process in 2027. Samsung has also disclosed plans to collaborate with Arm Holdings, a prominent provider of application processor (AP) technology, the “brain” of a smartphone, and Open AI, an organization contemplating the development of its own AI chips, in an attempt to gain a competitive edge over its industry counterparts in foundry business.


Hyoun-Soo Kim kimhs@donga.com