Taiwan’s MediaTek partners with Intel to manufacture chips using Intel Foundry Services

Intel will manufacture semiconductors for Taiwan’s MediaTek, giving the U.S. organization a big boost for its agreement chipmaking business. MediaTek is one of the greatest providers of smartphone processors and an opponent to Qualcomm. Intel Foundry Services will manufacture various chips for MediaTek for a range of brilliant edge gadgets, the two organizations said on Monday.

After Qualcomm and Amazon, MediaTek has likewise announced today that it will get into a strategic partnership with Intel to manufacture chips utilizing Intel Foundry Services (IFS). By adding another foundry partner with significant capacity in the United States and Europe, MediaTek plans to build a more balanced, resilient supply chain.

In the wake of taking over as CEO of Intel last year, Pat Gelsinger focused on revitalizing the foundry business to find and break the dominance of its Asian rivals TSMC and Samsung. Through its foundry business, Intel will manufacture chips that different organizations design. The U.S. goliath plans to spend more than $40 billion building fabrication plants all over the world.

“The agreement is designed to help MediaTek build a more balanced, resilient supply chain through the addition of a new foundry partner with significant capacity in the United States and Europe,” Intel said in a press release.

Most of MediaTek’s foundry services are at present given by TSMC, yet the organization is likewise attempting to diversify its supply chain by expanding its creation limit in both the US and Europe. With facilities in the two areas, Intel’s IFS is an ideal decision, and the organization expects long-term cooperation that might include different technologies and applications.

“As one of the world’s leading fabless chip designers powering more than 2 billion devices a year, MediaTek is a terrific partner for IFS as we enter our next phase of growth,” said IFS President Randhir Thakur. “We have the right combination of advanced process technology and geographically diverse capacity to help MediaTek deliver the next billion connected devices across a range of applications.”

MediaTek plans to develop various processors for a variety of shrewd edge gadgets utilizing Intel manufacturing techniques. The IFS platform’s spans of creation demonstrated three-dimensional FinFET transistors to next-generation breakthroughs with technologies optimized for superior execution, low power, and always-on connectivity.

NS Tsai, corporate senior vice president of Platform Technology and Manufacturing Operations at MediaTek, said, “MediaTek has long adopted a multi-sourcing strategy. We have an existing 5G data card business partnership with Intel, and now extend our relationship to manufacturing smart edge devices through Intel Foundry Services. With its commitment to major capacity expansions, IFS provides value to MediaTek as we seek to create a more diversified supply chain. We look forward to building a long-term partnership to serve the fast-growing demand for our products from customers across the globe.”

NS Tsai, a corporate senior vice president at MediaTek, said the partnership with Intel “provides value” to the organization as it looks “to create a more diversified supply chain.”

TSMC is MediaTek’s fundamental manufacturing partner for chips. It’s unclear what MediaTek semiconductors Intel will be answerable for making.

Chip organizations all over the world have been focusing on fortifying their stock chains and expanding creation in the midst of a global chip shortage that has endured since mid-2021.

Be that as it may, the manufacturing of the most developed chips isn’t something many organizations can do and is as a matter of fact overwhelmed by TSMC and Samsung. These two organizations represent over 70% of global foundry revenue, as per TrendForce.

As request keeps on ascending for chips, Intel and its Asian adversaries intend to increase spending on foundries.

Be that as it may, Intel falls a long way behind, however acquiring MediaTek as a client will give the organization a boost. MediaTek had 38% of the smartphone application processor market in the principal quarter, making it the greatest organization in the segment, as per Counterpoint Research.

Intel recently announced that its foundry business has signed deals with Qualcomm and Amazon.com.