One of the biggest chip design companies in the world, Taiwan’s MediaTek, will purchase chips from US chipmaker Intel.
One of the biggest agreements Intel has made public since starting its foundry division early last year is the manufacturing agreement.
Taiwan Semiconductor Manufacturing Co. (TSMC) is the market leader in the foundry industry, which manufactures chips that are designed by other businesses.
The majority of chips produced by Intel were self-designed.
When a chip design company like MediaTek enters a foundry, they run the danger of losing two years of effort, according to Hutcheson.
“You’ve lost that design window in that market window if anything happens and the foundry can’t pull it off.”
While Intel declined to disclose the deal’s financial terms or the number of chips it would be manufacturing for MediaTek, it did state that the first products would be produced within the next 18 to 24 months using a more advanced manufacturing process known as Intel 16. These chips will be used in smart devices.
MediaTek stated in a statement that it “has always adopted a multi-sourcing strategy.”
“Along with continuing our tight collaboration with TSMC in advanced process nodes, this
