Intel and MediaTek reach historic chip manufacturing deal

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Intel and MediaTek have reached a strategic agreement whereby Intel will help MediaTek develop “a more balanced and resilient supply chain”, relying on its “significant capacity in the United States and Europe”, as shared by Intel in its press release today.

In other words, Intel will manufacture chips for MediaTek using its own facilities, where these processors will go into a wide range of smart devices.

Intel aspires to be a chipmaking powerhouse

This positions Intel as a powerful rival against other manufacturers like TSMC, considering that many processor companies simply design their own chips and then send their mass production to companies like TSMC or similar.

For Intel, this is one of the most important agreements carried out since it launched its foundry business at the beginning of last year, something that some experts saw as risky at the time, but now they see this initiative positively thanks, among other things, to hiring the right executives, which means that it is paying off.

At the moment the details are not known, where according to Reuters, the manufacture of chips with a mature technology called Intel 16 will proceed, in relation to the 16-nanometer process for a range of intelligent devices, being already very far from the advances achieved in chip product processes, already reaching the 3 nanometer milestone.

It is only necessary to wait for the shipment of processors to take place within 18 or 24 months, the number of processors committed to the agreement being unknown, and the time that it will last.

For MediaTek:

MediaTek has always adopted a multi-source strategy (…) In addition to maintaining a close partnership with TSMC on advanced process nodes, this collaboration will enhance MediaTek’s supply for mature process nodes

Interestingly, Intel also previously struck a deal in its foundry business with Qualcomm Inc, MediaTek’s main rival in the smartphone processor segment.

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More information: Reuters
Image Credit: MediaTek