By Jane Lanhee Lee and Stephen Nellis
OAKLAND, Calif – U.S. chipmaker Intel Corp mentioned on Monday it'll produce chips for Taiwan’s MediaTek Inc, one of many world’s largest chip design companies.
The manufacturing association is likely one of the most important offers Intel has introduced because it launched its so-called foundry enterprise early final 12 months.
A foundry enterprise builds chips that different corporations design and Taiwan Semiconductor Manufacturing Co (TSMC) is the highest participant in that area. Intel has primarily constructed chips it designed itself.
“That’s a reasonably large deal for us to have interaction a buyer from Taiwan and them betting on us to develop and do this. And so this can be a main anchor buyer win,” Randhir Thakur, president of Intel Foundry Providers, informed Reuters.
TechInsights’ chip economist Dan Hutcheson mentioned there have been doubts within the business on whether or not Intel may pull off the foundry enterprise, however the take care of MediaTek reveals it’s on the suitable path and its investments, together with in recruiting the suitable executives, are paying off.
“While you go right into a foundry, you’re placing in danger about two years of labor,” mentioned Hutcheson in regards to the danger for chip design companies like MediaTek. “If one thing occurs and the foundry can’t pull it off, you’ve misplaced that design window in that market window.”
Whereas Intel didn’t give any monetary particulars of the deal or say what number of chips it will be producing for MediaTek, it mentioned the primary merchandise could be manufactured within the subsequent 18- to 24- month interval and can be in a extra mature know-how course of known as Intel 16, with the chips used for good units.
“MediaTek has at all times adopted a multi-sourcing technique,” MediaTek mentioned in a press release. “Along with sustaining shut partnership with TSMC in superior course of nodes, this collaboration will improve MediaTek’s provide for mature course of nodes.”
Intel beforehand introduced that its foundry enterprise has signed offers with Qualcomm Inc and Amazon.com.
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