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Intel will be producing custom chips, designed by Microsoft for Microsoft, as part of a deal that Intel says is worth more than $15 billion. <\/strong>Intel announced<\/a> the partnership during its Intel Foundry event today. Although neither company specified what the chips would be used for, Bloomberg <\/em>noted today<\/a> that Microsoft has been planning in-house designs for both processors and AI accelerators<\/a>.<\/p>\n<\/div>\n \u201cWe are in the midst of a very exciting platform shift that will fundamentally transform productivity for every individual organization and the entire industry,\u201d said Microsoft CEO Satya Nadella in the official press release. <\/p>\n<\/div>\n The chips will use Intel\u2019s 18A process, which has been a big part of its road map<\/a> since the company brought CEO Pat Gelsinger back<\/a> to turn things around. The company is counting on its chip foundry services to put it back on top of the chipmaking world, and it seems that Microsoft will be the first major customer for this project. <\/p>\n<\/div>\n Leaning on producing others\u2019 designs is a playbook that\u2019s worked well for competitor Taiwan Semiconductor Manufacturing Company (TSMC), which has lucrative partnerships with companies like Apple, Qualcomm, and AMD. Gelsinger told VentureBeat <\/em>today<\/a> that the company\u2019s foundry is a big part of its strategy.<\/p>\n<\/div>\n Intel\u2019s new foundry plans come as more companies seek to produce their own self-designed chips, but it still faces challenges. Intel recently pushed back the opening of a $20 billion Ohio chip plant<\/a> to 2026 \u2014 it was originally slated for 2025 \u2014 citing a slow chip market and delays in government grants. <\/p>\n<\/div>\n