Fastest among chipmakers: Intel announced on Wednesday that Microsoft intends to use its services for manufacturing a custom computing chip, while also expressing confidence in surpassing Taiwan Semiconductor Manufacturing Co (TSMC) before its internal deadline of 2025.

At an event in San Jose, California, Intel unveiled its plans to regain the title of producing the world's fastest chips from TSMC later this year with its Intel 18A manufacturing technology. Intel aims to maintain this lead through 2026 with its newly revealed Intel 14A technology.

The American chipmaker disclosed that Microsoft will leverage its 18A technology to produce an undisclosed chip, leading to an increase in foundry orders to $15 billion, up from the previously anticipated $10 billion.

TSMC refrained from commenting directly on the competitiveness of its advanced technologies beyond statements made by its CEO in January. However, the company's stock has seen a nearly 17 per cent increase this year due to its dominance in producing advanced chips used in AI applications.

Intel's unveiling of the 14A technology marks the first time the company has shared its plans beyond 2025, a deadline set by CEO Pat Gelsinger to regain the chipmaking crown.

With Intel's focus on securing government subsidies and attracting external customers, the company aims to regain its manufacturing lead. It highlights its geographic diversity and partnerships with institutions like Arm Holdings and universities to facilitate chip production and research.

While Intel has secured several customers for its 18A manufacturing technology, including Microsoft, the full list remains undisclosed. Additionally, Intel is in discussions with Nvidia regarding its manufacturing technology, a move seen as crucial for speeding up AI chip production.

The success of Intel's strategy hinges on its ability to attract outside customers, a journey expected to unfold over the next two to three years. Analysts view this effort as pivotal for Intel's turnaround story, although its effectiveness remains to be seen. 

(With Reuters inputs)