In a move that may surprise some, Intel has decided to enter the chip foundry business, which Taiwan’s Taiwan Semiconductor Manufacturing Co. dominates. By partnering with Taiwanese chip manufacturer MediaTek, Intel is looking to break into the lucrative industry. Intel uses cookies for many different purposes, including personalizing content and analyzing how visitors use a website. The good news is that you can update your cookie settings.
Intel Foundry Services
An announcement by Intel indicated that the company would use Intel Foundry Services to manufacture chips for MediaTek. These chips will be primarily for IoT devices and based on the Intel 16 process, a refined version of Intel’s first FinFET process. Intel 16 is designed for high performance, low power consumption, and always-on connectivity. In addition to the MediaTek chips, Intel plans to use the Foundry Services technology to make chips for other companies.
Intel is expanding its foundry services capabilities to increase its supply chain diversity. MediaTek currently relies on TSMC to manufacture most of its chips. However, Intel hopes to diversify its supply chain by partnering with companies to manufacture chips for less glamorous devices. Intel announced a similar deal with Qualcomm last year. This deal is one of the first steps in Intel’s strategy to become a more competitive player in the chip manufacturing industry.
MediaTek
The semiconductor giant has announced that it will start making chips for Taiwan-based MediaTek, a company whose products include smartphones and gaming consoles. Intel, the biggest company in the United States, has been experimenting with chip foundry businesses to break into the global market, primarily dominated by rivals like TSMC and Samsung. However, it is unclear whether this deal will help it expand its business in the West, given that it does not make the chips.
The deal aims to diversify the supply chain of MediaTek and expand its business internationally. The two companies will develop chips using Intel’s 16-node manufacturing process, which is optimized for low-power devices. MediaTek is already one of the world’s most prominent chip designers, but by using Intel’s manufacturing facilities, it will diversify its supply chain. In addition to using Intel’s facilities, MediaTek will also access a broader range of technologies.
Process node
MediaTek is a fabless semiconductor supplier that designs and markets systems-on-chips (SoCs) for mobile devices, home entertainment systems, and IoT products. Intel and MediaTek have been working together for a few years, and the companies recently announced a strategic alliance to bring 5G modems to PCs. By diversifying their supply chain, Intel and MediaTek hope to increase their competitiveness and reduce the risk of a disruption in the market.
The move to start making chips for MediaTek will also expand the capabilities of Intel’s Foundry Services (IFS), which was launched earlier this year to meet chip demand. While IFS has not revealed the details of the deal with MediaTek, it is hoped that this partnership will help move forward the $52 billion chip manufacturing subsidies bill. It is unclear whether Intel IFS will continue working with MediaTek or other startups.
Location
A new venture called Intel Foundry Companies will begin manufacturing chips for MediaTek. Intel previously partnered with MediaTek to design and fabricate chips, but now it wants to add chip manufacturing capacity in Europe and the US. MediaTek plans chips for most Android devices and is a fabless chip designer. The company sources most of its devices from Taiwan Semiconductor Manufacturing Company. Intel wants to add more diversity and capacity to its supply chain, which is the primary driver for this deal.
The new partnership between Intel and MediaTek will involve manufacturing multiple chips for the Taiwanese chip maker. MediaTek is a significant supplier of smartphone processors and 5G data cards. Intel expects to utilize its manufacturing facilities to produce chips for the Taiwan-based company, which will benefit from its processing technologies. In addition to manufacturing chips for smartphones, the partnership will also involve building chips for industrial computing and medical devices.
CHIPS Act
Intel foundry services have announced a partnership with fabless chip designer MediaTek, which will begin producing its products this year. The two companies did not disclose the financial terms of the deal. Intel plans to start tapeouts of MediaTek chips in early 2023. The company plans to make chips for intelligent edge devices, but it has not specified which products it will manufacture. MediaTek is a leading fabless chip designer, sourcing most of its devices from Taiwan Semiconductor Manufacturing Company.
In March, Intel announced it would open two new semiconductor fabrication facilities in Arizona. The company says the investment will create 15,000 new long-term jobs in the state. It also recently announced plans to acquire Israeli specialist chipmaker Tower Semiconductor for $5.4 billion as part of its IDM 2.0 strategy. However, the deal with MediaTek could be a boon to Intel’s chip-making future.
