** Shares of chipmaker Intel INTC.O rise 3.2% to $21 premarket

** Intel has reportedly entered into a large-scale foundry contract with software giant Microsoft MSFT.O using its 18A process, South Korea's Chosun Biz reported

** Tech heavyweights Google GOOGL.O and Nvidia NVDA.O are also in talks - report

** Intel's 18A process is facing "ups and downs," the company said last month and high-volume production on 18A will begin towards the second-half of 2025

** Reuters reported in March that Broadcom AVGO.O and Nvidia have run tests on Intel's 18A

** Up to last close, Intel had risen 1.3% YTD

(Reporting by Zaheer Kachwala in Bengaluru)

((Zaheer.Kachwala@thomsonreuters.com))