- U.S. chipmaker Intel Corp (INTC.O) said on Monday.
- It will create chips for Taiwan’s MediaTek Inc (2454.TW).
- One of the largest chip configuration companies in the world.
Intel recently said its branded foundry business manages Qualcomm Inc (QCOM.O) and Amazon.com (AMZN.O).
The assembly game plan is most likely the main arrangement Intel has signaled since it fired its supposed foundry business early last year.
A foundry company is making chips that different organizations are planning and Taiwan Semiconductor Manufacturing Co (TSMC) (2330.TW) is the main player. Intel mainly built chips that it designed itself.
“It’s no joke for us to attract a customer from Taiwan and bet on us to develop and try this. So this is an important win for the core customer,” Randhir Thakur, head of Intel Foundry Services, told Reuters.
TechInsights chip financial analyst Dan Hutcheson said there were questions at the company about whether Intel could pull the foundry business, but the arrangement with MediaTek shows it’s on. on the right path and that his companies, remembering to have recruited the right leaders, bear fruit.
“The moment you walk into a foundry, you seriously jeopardize about two years of work,” Hutcheson said of betting on chip-configuration companies like MediaTek.
“In the event that something happens and the smelter can’t make it happen, you’ve lost that blueprint window in that market window.”
While Intel didn’t give any monetary details of the arrangement or say how many chips it would supply to MediaTek, it said major elements would be produced within the next 18 to two years and would be in the process of being finalized. more experienced innovation called Intel 16, with the chips used for savvy gadgets.
“MediaTek has always embraced a multi-procurement methodology,” MediaTek said in a statement.
“In addition to maintaining a close organization with TSMC in advanced process centers, this joint effort will enhance MediaTek’s stock for mature cycle centers.”
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