US chipmaker Intel corp: Intel will produce chips from Taiwanese company MediaTek

American chip manufacturer Intel Corp. announced that it would produce chips for the Taiwanese MediaTech Inc, one of the world’s largest chip design firms.

Organization of production is one of the most significant transactions Intel announced since launching its so-called foundry business at the beginning of last year.

The foundry business makes chips that other companies design and develop. Taiwan Semiconductor Manufacturing Company (TSMC) is the best player in this area. Intel basically created chips that it developed itself.

“It is very important for us to attract a customer from Taiwan and they are betting that we will grow up and try it. So this is a big win for anchor clients.” — Randhir Thakur, President Intel Foundry ServicesReuters reported.

Dan Hutcheson, a chip economist at TechInsights, said there are doubts in the industry about whether Intel can handle the foundry business, but the MediaTek deal shows it is on the right track and its investment, including in finding the right executives. , pay off.

“When you go into a foundry, you put about two years of work at risk,” Hutcheson said of the risk for chip design firms like MediaTek. “If something happens and the foundry can’t pull it off, you’ll lose that design window in that market window.”

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While Intel hasn’t released any financial details of the deal or revealed how many chips it will produce for MediaTek, it has stated that the first products will be produced over the next 18 to 24 months and will be in a more mature process called Intel 16 with Chips. used for smart devices.

“MediaTek has always followed a multi-source strategy,” MediaTek said in a statement. “In addition to working closely with TSMC on advanced technology nodes, this collaboration will enhance MediaTek’s offering for mature technology nodes.”

Intel previously announced that its foundry business had signed deals with Qualcomm Inc and Amazon.

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