Intel’s new foundry business has reached a deal to build processors for the Taiwanese chip designer MediaTek.
On Monday, MediaTek said it entered into the deal to “build a more balanced, resilient supply chain” for the company’s products, which include processors for smart home devices, Chromebooks and tablets.
MediaTek also noted Intel’s foundry business is expected to have “significant capacity” for both the US and Europe. “With its commitment to major capacity expansions, IFS (Intel Foundry Services) provides value to MediaTek as we seek to create a more diversified supply chain,” said NS Tsai, the chip vendor’s corporate vice president.
The partnership is a win for Intel considering that MediaTek currently sources chip production from rival foundry TSMC. Intel’s aim is to attract all the major clients to its foundry business, including even Apple, which also relies on TSMC to build its iPhone and Mac processors.
However, the deal with MediaTek was sparse on details, including when the Intel-based chip production will begin. But it may signal that MediaTek is preparing for a larger expansion in the US and European markets. For now, the companies have only said the manufacturing will focus on “multiple chips for a range of smart edge devices.”
Although Intel’s foundry services started off by manufacturing chips at the older 22-nanometer node, the business unit plans to eventually upgrade to Intel’s more advanced 7-nanometer technology and beyond in the coming years.
“We have the right combination of advanced process technology and geographically diverse capacity to help MediaTek deliver the next billion connected devices across a range of applications,” Intel Foundry Services President Randhir Thakur added in the
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