Intel To Build Processors For Smartphone Chip Vendor MediaTek

 Intel's new foundry business has struck a deal to make processors for Taiwanese chip designer MediaTek.

On Monday, MediaTek said it had signed an agreement to "build a more balanced and resilient supply chain" for the company's products, which include processors for smart home devices, Chromebooks and tablets.

MediaTek also noted that Intel's foundry business is expected to have "huge capacity" in the U.S. and Europe. NS Tsai, corporate vice president of the chip supplier, said: "IFS (Intel Foundry Services) is committed to expanding production capacity, providing value to MediaTek, and helping us build a more diversified supply chain."

The partnership is a win for Intel, given that MediaTek currently sources chip production from rival TSMC. Intel's goal is to attract all major customers to its foundry business, even Apple, which also relies on TSMC for iPhone and Mac processors.

However, details of the deal with MediaTek are scant, including when production of Intel-based chips will begin. But it could be a sign that MediaTek is gearing up for a bigger expansion in the U.S. and European markets. For now, the companies have only said that manufacturing will focus on "multi-chips for a range of intelligent edge devices."

While Intel's foundry services started with making chips on the older 22-nanometer node, the business unit plans to eventually upgrade to Intel's more advanced 7-nanometer technology and beyond over the next few years.

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