Advertisement
Semiconductors
TechBig Tech

Intel to produce chips for Taiwan’s MediaTek in big foundry push, an industry dominated by TSMC

  • Intel announced that it will produce chips for chip firm MediaTek as it looks to grow its foundry business by manufacturing designs from other companies
  • The US chip giant said the first products would be manufactured in 18 to 24 months using a more mature technology process called Intel 16

Reading Time:2 minutes
Why you can trust SCMP
0
Computer chip maker Intel’s logo is shown on a gaming computer display during the opening day of E3, the annual video games expo revealing the latest in gaming software and hardware in Los Angeles, California, on June 11, 2019. Photo: Reuters
Reuters
US chip maker 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.

“When you go into a foundry, you’re putting at risk about two years of work,” said Hutcheson about the risk for chip design firms like MediaTek. “If something happens and the foundry can’t pull it off, you’ve lost that design window in that market window.”

Advertisement