Intel Corp. Chief Executive Officer Pat Gelsinger has landed Amazon.com Inc.’s AWS as a customer for the company’s manufacturing business, potentially bringing work to new plants under construction in the US and boosting his efforts to turn around the embattled chipmaker.

According to Gelsinger, spinning off Intel Foundry as a fully independent subsidiary will enable it to evaluate independent funding sources. The decision was made days after Gelsinger and other executives met with Intel’s board of directors to assess the future of the company.

Company will make manufacturing operations an independent subsidiary and pause construction on plants in Europe and Asia.

Amazon's AWS cloud computing division already designs several chips for use in its data centers and has hired Intel to package at least one version.

Intel and AWS will coinvest in a custom semiconductor for artificial intelligence computing – what’s known as a fabric chip – in a “multiyear, multibillion-dollar framework,” according to a statement Monday.

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 is spinning off its chipmaking business as part of its plans to reverse billions in losses and a tumbling stock price. In an announcement on Monday, Intel CEO Pat Gelsinger said the Intel Foundry will become an independent subsidiary with “clearer separation and independence” from Intel.