It seems that Intel is fortifying its position in the mobile chip manufacturing industry. Last year, the company signed a deal with Qualcomm to help diversify its manufacturing capabilities, and today Intel Foundries striked another similar deal – this time with MediaTek.
Intel has been making its own silicon for quite a while but its efforts were mainly focused on the PC segment. With the creation of the Intel Foundry Services branch last year, the company is looking to expand into mobile SoC and smart home territories.
MediaTek, on the other hand, is looking to expand its supply chain, specifically in the US, and the addition of Intel as a foundry partner is one of the better ways to do so.“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 Intel Foundry Services 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.”
Reading into the statement above it’s clear that MediaTek won’t use Intel for high end mobile chips such as the flagship Dimensity processors. It’s much more likely we’re talking about small connected gadgets such as smart thermostats, home automation devices, and things like that, although with the ongoing chip shortage, no scenario can be ruled out.
The part where Randhir Thakur talks about the “geographically diverse capacity” basically says that. Intel has the geographical advantage of operating in the western hemisphere, and with the majority of silicon coming from the Far East, the company can provide its partners with an alternative, and also cut down delivery costs and times.