Intel and Hitachi Expand AI Partnership Into Factories, Energy Systems, and Semiconductor Manufacturing

Hitachi and Intel have announced a strategic collaboration focused on physical AI, advanced computing, and digital infrastructure across manufacturing, energy, mobility, and other industrial sectors.

The companies said they will combine Hitachi's information technology (IT), operational technology (OT), and manufacturing expertise with Intel's computing platforms and semiconductor technologies to develop new industrial AI applications and infrastructure solutions. The announcement was made on June 5.

The partnership will focus on five areas: foundry tools, quantum computing, energy optimization, custom silicon and edge AI applications, and factory automation.

Toshiaki Tokunaga, President and CEO of Hitachi, said the collaboration builds on more than 40 years of work between the two companies and is intended to accelerate AI deployment across critical infrastructure sectors. Lip-Bu Tan, CEO of Intel, said physical AI will drive new advances in robotics, autonomous machines, and industrial edge systems.

Semiconductor and Energy Focus

One of the most defined parts of the agreement centers on semiconductor manufacturing.

Hitachi said it plans to use data generated by its metrology systems, critical dimension scanning electron microscopes (CD-SEMs), and etching equipment through its ExTOPE platform. The company said physical AI capabilities will be used for predictive diagnostics and maintenance optimization with the goal of improving manufacturing yields, reducing time to market, and improving quality.

The companies also outlined plans to expand collaboration in quantum computing research.

In energy infrastructure, Hitachi's HMAX Energy platform will be deployed within Intel fabrication facilities to provide managed services for core power equipment. Intel also plans to supply high-voltage silicon chips for Hitachi power systems.

Physical AI Moves Into Industrial Operations

The announcement adds to a growing number of industrial AI initiatives focused on physical systems rather than software-only applications.

Last month, Kawasaki Heavy Industries launched a Physical AI Center in Silicon Valley with NVIDIA, Microsoft, Analog Devices, and Fujitsu to support the development of AI-powered industrial and robotic systems.

Hitachi has also been expanding its broader AI strategy. Earlier this year, the company partnered with Anthropic to deploy Claude across approximately 290,000 employees while pursuing AI initiatives across manufacturing, transportation, energy, and financial services.

The collaboration also reflects Intel's increasing focus on edge AI and industrial computing. During Computex 2026, Intel highlighted physical AI, robotics, and intelligent edge systems as key growth areas alongside its traditional computing business.

The companies said they will continue exploring opportunities in custom silicon, edge AI applications, and factory automation. Those efforts are expected to target industrial environments where AI systems interact directly with machines, infrastructure, and operational processes rather than solely processing information in cloud-based systems.

Hitachi reported revenue of 10.59 trillion yen for fiscal year 2025, which ended March 31, 2026. The company employs approximately 290,000 people globally across its digital systems, energy, mobility, and industrial businesses.