In order to get rid of the predicament, the former chip leader $Intel (INTC.US)$ is taking active actions.

Cooperating with Amazon to produce AI chips, it is expected to receive a $3 billion subsidy from the US government...

As a result, Intel's stock price rose 6.36% and rose by over 7% before the market opened. Since the beginning of this year, Intel's stock price has fallen by 58%.

Following Amazon and the US government,

The latest, Intel CEO Pat Gelsinger released a memo to employees, elaborating on the preparations for the next stage of transformation.

He announced that Intel will expand its strategic cooperation with Amazon AWS, including joint investment in custom chip design.

It is reported that the two sides announced a multi-year, multi-billion-dollar framework covering Intel's products and wafers.

Amazon's AWS has already designed several chips for its data centers and has hired Intel to package at least one version.

It is reported that Intel will produce an 'artificial intelligence architecture chip' for Amazon, which will use Intel's 18A process.

Gelsinger commented: 'Today's announcement is significant. This is a very demanding customer with very complex design capabilities.'

Amazon is the largest cloud computing provider, which can help people have confidence in Intel's ability to compete with companies like Taiwan Semiconductor.

Earlier in February, cloud computing provider Microsoft announced plans to use Intel for some of its internal chips.

Earlier on Monday, Intel also announced that it is eligible for up to $3 billion in US government funding for chip manufacturing for the military.

The memorandum indicates that continuous progress has been made in building a world-class contract manufacturing business.

At the same time, Intel is actively working on cost reduction and efficiency improvement.

Intel hopes to improve the manufacturing efficiency of its contract factories, and the construction projects in Poland and Germany will be temporarily suspended for about two years according to market demand.

Intel also stated that another project in Malaysia will be completed, but it will only be operational if conditions permit.

However, Intel is still committed to expanding in Arizona, New Mexico, Oregon, and Ohio in the United States.

Last month, Intel also announced plans to cut 15,000 employees, saving $10 billion in costs, and suspending dividend payments.

Intel also hopes to better focus its products on AI computing and reiterated its plan to sell part of its stake in Altera to private equity investors.

There is still a long way to go.

Despite making multiple efforts, Intel still has a long way to go to regain full trust from the capital markets.

Over the years, Intel has been lagging behind its competitors, with its technological advantage declining. Currently, its market cap is less than $90 billion, no longer one of the top ten chip companies.

Last month, Intel's dismal performance shocked investors, leading to the largest single-day stock price drop in decades. Analysts said this is Intel's worst performance report ever.

In response, Gelsinger admitted that Intel's performance has been negatively reviewed, sparking speculation about the company's future prospects. The only way to "silence critics" is to deliver results and execute better, and today's news is a step towards that goal.

Editor/Somer