The contract manufacturing customers, including Intel’s own business units, may receive favorable pricing.
Intel’s standalone programmable chip unit, Altera, is eyeing a significant opportunity in artificial intelligence (AI), according to CEO Sandra Rivera. The unit, which became independent at the start of the year, is positioning its programmable chips as a versatile solution for AI applications, filling a niche between custom processors designed by cloud computing companies like Amazon and general-use AI chips made by Nvidia.
Rivera highlighted the importance of programmable chips in the rapidly evolving AI hardware landscape, stating that they are always at the forefront of innovation. The market for programmable chips is estimated to be around $8-$10 billion for 2023, but Rivera believes the opportunity could be larger than anticipated, given the role of programmable chips in various stages of the AI workflow.
The company’s Agilex line of programmable chips is currently produced by Intel Foundry, Intel’s contract manufacturing arm. While Rivera did not confirm whether Intel Foundry would manufacture the upcoming Agilex 3 chips, she expects that they will be treated as customers and receive a ‘friends and family discount.’
An Intel spokesperson later clarified that contract manufacturing customers, including Intel’s own business units, may receive favorable pricing based on their anticipated volumes, with Intel business units being the largest customers of Intel Foundry today.
