Intel is going to start building chips for MediaTek

Intel has announced its first major customer partner for foundry services, MediaTek. MediaTek is known for developing Arm technology-based smartphone processors and chips for other smart edge devices, and the partnership will allow the company to have a more resilient supply chain around the world, especially in the U.S. and Europe. This, in turn, will make it easier for more devices to use MediaTek processors without supply constraints.

Intel launched Foundry Services (IFS) last year as part of a new strategy that sees the company open its manufacturing facilities to other companies, with MediaTek being one of the first to join. Intel typically designs only x86 processors, but foundry services can also make Arm processors.

Randhir Thakur, President of IFS, said: "As one of the world's leading fabless chip designers, powering more than 2 billion devices annually, MediaTek is an excellent partner for IFS as we enter the next phase of growth. "We have the right combination of advanced process technology and geographically diverse capabilities to help MediaTek deliver the next billion connected devices across a range of applications."

Intel has been making significant investments to strengthen its manufacturing capabilities. The company recently completed an expansion of its Oregon manufacturing facility and announced a $20 billion investment in another facility in Liking County, Ohio. Additionally, in Europe, more than $36 billion has been invested in expanding existing facilities and building new ones, all to make Intel a manufacturing powerhouse, not only for its own processors but also for third parties.

It's all part of the company's IDM 2.0 strategy, which not only sees Intel as the primary foundry partner for other chip designers, but quite the opposite -- Intel relies on other foundries to make certain chips. This should allow for a more open and fluid ecosystem and hopefully lead to greater manufacturing capacity across the industry.

Having MediaTek as one of its partners is a huge step forward, as the company's popularity on mobile devices is almost on par with Qualcomm. This isn't the first time the two companies have collaborated, as Intel and MediaTek are currently making 5G modems for cellular-connected PCs.

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