How Intel may ‘power’ your next smartphone or other smart device
US chipmaker Intel Corp said on Monday it will produce chips for Taiwan’s MediaTek Inc, one of the world’s largest chip design firms.
The manufacturing arrangement is one of the most significant deals Intel has announced since it launched its so-called foundry business early last year.
A foundry business builds chips that other companies design and Taiwan Semiconductor Manufacturing Co (TSMC) is the top player in that space. Intel has mainly built chips it designed itself.
“That’s a pretty big deal for us to engage a customer from Taiwan and them betting on us to grow and try this. And so this is a major anchor customer win,” Randhir Thakur, president of Intel Foundry Services, told Reuters.
TechInsights’ chip economist Dan Hutcheson said there were doubts in the industry on whether Intel could pull off the foundry business, but the deal with MediaTek shows it’s on the right path and its investments, including in recruiting the right executives, are paying off.
