Fortinet will submit the next generation of safety chips to Inteldeer for production. This is a new collaboration announced by Intel on Tuesday and is the first publicly named business customer in Intel Industries since Chen's CEO.
The volume of the order was not disclosed but, for Intel, the significance was that its substitute business had finally emerged as a publicly identifiable external customer. The market has previously been concerned about whether Intel could obtain more chip design company orders for the industry to support its large capital spending needed to expand production in the United States and overseas.
Fortinet uses Intel 4 program
According to Intel to CNBC, a generation of security chips under this section, called SP6, will be produced using the Intel 4 program. The process is not the most advanced node in Intel, but rather an earlier generation of technology, more for relatively simple chips like the network type ASIC.
The advanced processes that Intel is currently pushing are 14A and 18A, mainly for higher performance processors. In April this year, the company stated in a document that it was still seeking to use “critical” customers with state-of-the-art manufacturing technologies.
I'm still looking for big clients.
Chen Liwu, in an interview with CNBC in May this year, stated that there were “multi-clients” who cooperated with Inteldeer Industries, but that, according to their personal principles, they did not voluntarily disclose their names. Today, Fortinet is the first officially published name that has helped to raise external confidence in the capacity of Inteldeer.
So far, the largest and most clearly identified client of Inteldale Industries remains itself. The United States Government is also using Intel capacity to produce defence chips. Previously, during Pat Kissinger ' s tenure, Microsoft had announced that it was working with Intel to make an unnamed processor, and the Amazon had indicated that Intel would be commissioned to produce customized AI chips, but the projects were reported as relatively low-production orders.
AI security requirements drive Fortinet input
Fortinet, while not as well focused as apples, Tesla or large cloud service providers, has recently experienced a steady rise in the cyber-security market. With the expansion of AI applications, business demand for high-level security capabilities has increased, which has also led to increased chip input.
Fortinet stock prices have more than doubled since this year. The company indicated at the last quarterly financial conference in May that it would continue to invest in its own ASIC technology. For Intel, such security chip orders, while not necessarily top-end-processed customers, can add actual cases of delivery for their substitute operations.
The second-quarter performance will be announced by Intel after Thursday on the United States stock, at which time the market will also continue to follow the client progress and capital expenditure arrangements for its substitute business.