(Reuters) - Intel ( INTC ) and Amazon's ( AMZN ) AWS said on Monday they would expand their collaboration, including a co-investment in custom chip designs, under a multi-year, multi-billion-dollar framework.

Intel's ( INTC ) shares were up 9% in extended trading.

As part of the collaboration, the chipmaker will produce an AI fabric chip for AWS on Intel ( INTC ) 18A, its most advanced process node.

The company also said it plans to establish Intel Foundry as an independent subsidiary of Intel ( INTC ).