Intel today announced that it is partnering with MediaTek to produce its chips using Intel Foundry Services. The goal here is to help MediaTek build a more balanced and resilient supply chain through the addition of a new foundry partner with significant capabilities in the US and Europe. Last year, the company announced a similar deal with Qualcomm.
Intel is a company that designs and manufactures its own chips. Last year, the company decided to open this facility to others with the launch of Intel Foundry Services. MediaTek has now signed up to be one of the first large customers of Intel’s new venture.
“As one of the world’s leading fabless chip designers powering over 2 billion devices annually, MediaTek is an exceptional partner for IFS as we enter our next phase of growth,” said Randhir Thakur, president of Intel Foundry. Services. “We have the right combination of advanced process technology and geographically diverse capabilities to help MediaTek deliver the next billion connected devices across a broad range of applications.”
Without going into the details of the agreements or what they will do, the company said MediaTek plans to use Intel processing technologies to “produce more chips for a range of smart edge devices.”
NS Tsai, senior corporate vice president of MediaTek’s Platform Technology & Manufacturing Operations, said, “MediaTek has long adopted a multi-sourcing strategy. We already have a commercial partnership with Intel for 5G data cards and are now extending 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 diverse supply chain. We look forward to building a long-term partnership to meet the rapidly growing demand for our products from customers around the world. “
IFS currently benefits from being based in the Western Hemisphere. With most of the current silicon production coming from the east, particularly from countries like Taiwan, problems like continued chip shortages were inevitable especially during the current pandemic.
Intel intends to anticipate the situation and help companies diversify their portfolios by offering their services in the United States and Europe. The company has already announced expansion plans at existing sites in the United States and the addition of new sites in Ohio and Germany.
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