Intel To Produce Chips For Taiwan’s MediaTek To Compete Rivals

Intel

Intel will produce semiconductors for Taiwan’s MediaTek, greatly enhancing the U.S. company’s contract chipmaking division.

One of the major suppliers of smartphone processors, MediaTek is a competitor of Qualcomm. The two firms announced on Monday that Intel Foundry Services will produce several chips for MediaTek for a variety of smart edge devices.

In order to catch up to and overthrow the supremacy of Intel’s Asian rivals TSMC and Samsung, Pat Gelsinger made rejuvenating the foundry business a top goal after taking over as CEO of Intel last year. Chips created by other firms will be produced by Intel through its foundry operations. The American behemoth intends to establish fabrication plants all around the world for more than $40 billion.

Through the inclusion of a new foundry partner with sizable capacity in the United States and Europe, the deal is intended to assist MediaTek in creating a more balanced, resilient supply chain, according to a news statement from Intel.

Even if MediaTek will help Intel catch up, the business is far behind. According to Counterpoint Research, MediaTek was the market leader in the smartphone application processor market in the first quarter with a share of 38%.

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