Intel and MediaTek have formed a strategic partnership to build chips for “a wide range of intelligent edge devices” using Intel Foundry Services (IFS), Intel announced. The aim is to help MediaTek build a “more balanced, flexible supply chain”, with additional capacity in the US and Europe.
MediaTek is a reputable chipmaker that supplies processors for smartphones made by OnePlus, Samsung and others, with most of the capacity currently being taken by fab giant TSMC. However, it looks like Intel will be making chips for less glamorous devices used for industrial computing, medical devices, internet of things applications and more. Intel is currently making chips for MediaTek used in its 5G data card business.
However, this partnership fulfills Intel CEO Pat Gelsinger’s commitment to finding customers for his foundry business. Intel IFS launch in 2021 to capitalize on rising demand for semiconductor manufacturing by offering “leading advanced packaging processes and technologies,” along with committed capacity in the United States and Europe. As one of the leading stable chip manufacturers, MediaTek will be an important customer.
Last year, Intel announced that it would Build chips for Qualcomm as part of its foundry launch. It also detailed its “IDM 2.0” strategy to catch up with rivals TSMC and Samsung by 2025, kicking off with a $20 billion investment in two manufacturing plants in Arizona. By the end of 2021, the Biden administration The plan was rejected of Intel to manufacture silicon wafers in China as a way to address the global chip shortage, citing security concerns.
The US Senate is set to vote on the CHIPS Act designed to support domestic semiconductor manufacturing with tax credits and grants of up to $52 billion. However, some in the industry are concerned that it could be over-favoring Intel, to the detriment of smaller manufacturers like AMD, Qualcomm and NVIDIA. Those companies design their own chips but don’t manufacture them, so they won’t benefit directly from the subsidy.
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