Intel foundry business to make custom chip for Amazon; shares jump 8%

Intel’s foundry, or contract manufacturing business, has signed up Amazon’s cloud services unit as a customer for making custom artificial intelligence chips, the companies said on Monday, a deal that gives the chip maker a vote of confidence.

Intel’s shares rose roughly 8 per cent in extended trading after CEO Pat Gelsinger released a memo to employees announcing Intel had secured the Amazon unit as be a multibillion-dollar customer, paying Santa Clara, California-based Intel for design services and manufacturing. The memo also outlined Intel’s planned cost cuts.