The chipmaker, which has been struggling, said on Monday that it obtained a new government grant, signed a contract with Amazon and would pause some initiatives.
Intel, a Silicon Valley giant that has struggled after a series of stumbles, said on Monday that it had signed new contracts and made further belt-tightening plans as it tries to cope with a deep slump in its business.
The company, which had embarked on a plan to expand its production capacity in the United States and abroad, said that Amazon would use its nascent chip production service, or foundry, to build at least two chips for its Amazon Web Services unit. It also said that it had secured an investment of up to $3 billion from the Biden administration to expand its manufacturing of advanced semiconductors for the U.S. military.
In a separate announcement, Intel said it would pause construction of new plants in Germany and Poland by about two years to wait for improved chip demand. But the company reaffirmed plans for investments in the United States, including a closely watched expansion in Ohio, its first major new production site in four decades.
Intel has faced calls from some investors to spin off its manufacturing business. While stopping short of that, Pat Gelsinger, Intel’s chief executive, said the company planned to establish the foundry business as an independent subsidiary inside of Intel.
Intel’s shares jumped 6 percent on news of the government award and more than 8 percent following the Amazon news.
The changes, which follow a board meeting last week, are “critical steps forward” to make Intel leaner and more efficient, Mr. Gelsinger said. He emphasized that it would be the “most significant transformation of Intel in over four decades.”