Intel (INTC) and Amazon Web Services (AMZN) announced a co-investment in custom chip designs in a multi-billion, multi-year strategic collaboration. Creative Strategies CEO and principal analyst Ben Bajarin joins Asking for a Trend to discuss the news.

Bajarin explains that Intel has won a large customer in AWS: "There's positive momentum there in terms of getting foundry wins." He believes that Intel is ultimately setting the stage to split into two companies: Intel and an its foundry segment

He believes that having an Intel foundry subsidiary is "essentially as close as you can get to putting the right kind of walls and guardrails around Intel foundry so that other customers can come in and feel comfortable knowing that they'll have capacity wafer allocation." He highlights that the services side of the business needs to be its own entity to attract wafer-scale customers.

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This post was written by Melanie Riehl