IT services major Wipro has announced bagging a significant new deal from Intel Foundry, the chip manufacturing division of US semiconductor giant Intel. As part of the collaboration, Wipro engineers will work alongside Intel on designing cutting-edge consumer chips on the ’18A’ process node that powers advanced electronics.
Wipro Eyes New Revenue Stream in Lucrative Space While deal financials remain undisclosed, industry consultants estimate it to be among Wipro’s largest contract signings in 3 years. It provides Wipro vital access to partake in the $500 billion global semiconductor value chain, as part of its $1 billion ‘ai360’ growth initiative.
With custom silicon demand booming, the Intel partnership also offers Wipro opportunities to target startups and other customers with tailored chip solutions leveraging Intel’s manufacturing firepower.
Wipro to Tap Intel’s Latest Chip Tech Advances The new engagement will see Wipro leverage Intel’s expertise on the company’s sophisticated sub-nanometer ’18A’ fabrication technique to build chips for clients across auto, telecom and industrial segments, including designs for generative AI.
Set to launch next year, Intel 18A node promises substantial efficiency and performance leaps to power bleeding-edge electronics like autonomous vehicles. By integrating these advances early through the partnership, Wipro eyes bolstering its chip design credentials.
Boost for Wipro Amid Growth Struggles Significantly, the Intel deal provides a leg-up to Wipro amid growth struggles, with Gartner estimating robust 17% semiconductor industry growth through 2023. In contrast, Wipro stares at up to 4% drop in revenue this fiscal.
Moreover, with former deals head Stephanie Trautman also quitting end-December, the Intel partnership signals Wipro’s ambitions in lucrative new domains despite ongoing pressures in legacy offerings.
