Intel will make chips for Microsoft

US chip company Intel will make high-end semiconductors for Microsoft, the companies announced, as it seeks to compete with TSMC and Samsung to supply the next generation of silicon used in artificial intelligence for customers around the world.

Chief executive Pat Gelsinger said at a company event on Wednesday that Intel is set to “rebuild Western manufacturing at scale,” buoyed by geopolitical concerns in Washington about the need to bring leading-edge manufacturing back to the US.

Since Gelsinger took the helm three years ago, Intel has been attempting to reinvent itself as a foundry business, building chips designed by other companies, regaining an edge in making the most advanced semiconductors. Demand for them is soaring, driven by the rise of generative AI.