After-hours rise nearly 8%! Intel Corporation(INTC.US) welcomes multiple bullish news: it will manufacture AI chips for Amazon.com, Inc., and confirms eligibility for receiving government funding in the United States.

According to a statement on Monday, Intel Corporation (INTC.US) will be manufacturing custom AI chips for Amazon.com, Inc. (AMZN.US), and the two companies have reached a multi-year collaboration framework on products and wafer manufacturing. The cloud services division of Intel Corporation and Amazon.com, Inc., AWS, will jointly invest in customized semiconductors for artificial intelligence computing, which will rely on Intel Corporation's 18A technology, an advanced chip manufacturing technology. Intel Corporation CEO Pat Gelsinger is working to make AWS a customer of the company's manufacturing business, which could potentially bring job opportunities to the new factories being built in the United States and strengthen his efforts to turn around the struggling chip manufacturer. In 2021, Gelsinger returned to Intel Corporation with bold plans but had to abandon some ambitions to improve efficiency. With declining sales and accumulating losses, Intel Corporation announced last month plans to lay off 15,000 employees, saving $10 billion in costs and suspending dividends. Now, Intel Corporation is adjusting its expansion plans and focusing on core markets. Intel Corporation has further reduced its overseas expansion plans, postponing the construction of new factories in Germany and Poland, but still focusing on expansion in Arizona, New Mexico, Oregon, and Ohio in the United States. The construction projects in Poland and Germany will be put on hold for about 2 years based on market demand. Intel Corporation stated that another factory in Malaysia will be completed, but will only be operational if conditions support it. During a three-day board meeting last week, executives presented plans on how to save cash while keeping Gelsinger's transformation plan on track. The efforts of the CEO depend on transforming Intel Corporation into a so-called foundry, a chip manufacturer that produces products for external customers. Progress has been slow in attracting clients for this project, and having a well-known client like Amazon.com, Inc. represents a significant victory. Intel Corporation also aims to accelerate the execution of a $10 billion cost-saving plan and focus its products more on the area of artificial intelligence computing where competitors like NVIDIA Corporation (NVDA.US) excel. The company also plans to reduce its global real estate business by about two-thirds by the end of this year. The company also reiterated its plans to sell a portion of its stake in Altera Corp. to private equity investors. Intel Corporation acquired this business in 2015 and separated it from its operations last year with the goal of going public. AWS is the largest cloud computing provider, and its partnership with Intel Corporation could help the company compete with foundry leader Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR (TSM.US). AWS has been using Intel Corporation's processors for years but has been shifting towards internal design, which are the products Intel Corporation might help manufacture now. Another major cloud computing provider, Microsoft Corporation (MSFT.US), announced in February that it plans to use Intel Corporation's chips in some of its internal chip designs. Additionally, Intel Corporation will establish Intel Corporation Foundry Services as an independent division. In order to attract more clients, Intel Corporation plans to separate the foundry business (IFS) from the company's other businesses and make it a wholly owned subsidiary. This move aims to show potential clients that IFS is an independent supplier and build confidence, especially for companies that are competitors with Intel Corporation and want to work with them. In another victory, Intel Corporation received support from the U.S. government. Earlier on Monday, Intel Corporation announced that it is eligible to receive up to $3 billion in funding from the U.S. government to manufacture chips for the military. The program, called "Secure Enclave," aims to establish a stable supply of cutting-edge chips for defense and intelligence purposes. The Biden administration allocated funds to Intel Corporation through the CHIPS Act to provide stable advanced chip supply for the U.S. defense and intelligence departments. Through this project, Intel Corporation is expected to gain more government contracts, including a contract worth up to $3.5 billion to manufacture semiconductor components for the Pentagon. The funding will support factories in four states in the U.S. These projects include a factory in New Albany, Ohio, which Intel Corporation has stated could become the world's largest chip manufacturing factory. To regain full trust from Wall Street, Intel Corporation still has a long way to go. After years of losing to competitors and declining technological superiority, the valuation of this Silicon Valley pioneer is less than $90 billion. It is no longer one of the top ten chip companies. Meanwhile, NVIDIA Corporation currently has a market value of about $290 billion.Por favor, hblame en ingls.The dismal financial report released by Intel Corporation last month shocked investors and caused the largest single-day drop in decades. Analysts have called it the worst financial report in Intel Corporation's history. In a letter to employees, Gelsinger admitted that Intel Corporation's performance had attracted negative scrutiny and sparked speculation about what might happen with the company. He said that the only way to "quell criticism" is to deliver results and improve execution. He said that today's announcement was a step towards that goal. After a series of announcements, Intel Corporation's stock rose nearly 8% in after-hours trading on Monday.