Microsoft Will Use Intel to Manufacture Home-Grown Processor

Intel Corp. has landed Microsoft Corp. as a customer for its made-to-order chip business, marking a key win for an ambitious turnaround effort under Chief Executive Officer Pat Gelsinger.

Microsoft plans to use Intel’s 18A manufacturing technology to make a forthcoming chip that the software maker designed in-house, the two companies said at an event Wednesday. They didn’t identify the product, but Microsoft recently announced plans for two homegrown chips: a computer processor and an artificial intelligence accelerator.

Intel CEO Pat Gelsinger is pushing deeper into the made-to-order chip business as part of a comeback plan.

Photographer: David Paul Morris/Bloomberg

Intel has been seeking to prove it can compete in the foundry market, where companies produce custom chips for clients. ...