Intel has scored a major victory, securing Taiwan’s MediaTek as a customer for its foundry services.
Intel has been working to revitalize its semiconductor business, and providing foundry services to other companies has been a major part of that revitalization. According to Reuters, the company has secured a contract to produce chips for MediaTek, one of the leading semiconductor design firms whose designs are used in a wide range of mobile devices.
“That’s a pretty big deal for us to engage a customer from Taiwan and them betting on us to grow and try this. And so this is a major anchor customer win,” Randhir Thakur, president of Intel Foundry Services, told Reuters.
The move is a testament to Intel’s success in establishing its foundry business, especially since MediaTek has a carefully developed reputation for designing some of the highest-quality chips in the business. Some Qualcomm and Samsung chips — both of which were manufactured by Samsung — have struggled with heat issues.
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In contrast, MediaTek has relied on TSMC, a company whose manufacturing processes are considered more advanced than those of other companies. As a result, MediaTek has not been plagued with the same heat issues as its rivals.
The fact that the company is willing to invest in Intel’s foundry services is a huge vote of confidence in the latter’s abilities.
“When you go into a foundry, you’re putting at risk about two years of work,” said TechInsights’ chip economist Dan Hutcheson. “If something happens and the foundry can’t pull it off, you’ve lost that design window in that market window.”
While the contract is a big win for Intel, MediaTek made clear it will continue with a multi-vendor approach.
“MediaTek has always adopted a multi-sourcing strategy,” MediaTek said in a statement. “In addition to maintaining close partnership with TSMC in advanced process nodes, this collaboration will enhance MediaTek’s supply for mature process nodes.”