MediaTek will use Intel services to produce chips for future smart devices

As we learned from a press release published by Intel, it is trying to start its business in 2021 from scratch thanks to a new partnership with Mediatek. The announcement comes at a time when the US semiconductor industry, and Intel in particular, is about to receive government grants to boost US chip production.

Intel’s decision to invest $20 billion of its own funds in Intel Foundry Services (IFS) stems from the company is looking for reverse years of declinepartially offering its manufacturing services to chip developers such as MediaTek.

remember, that Currently, MediaTek turns to TSMC for most of its casting services.but appears to be looking to diversify its supply chain by adding manufacturing facilities in both the US and Europe.

It will now use Intel Foundry services to produce chips for a new range of devices, mainly IoT. Intel will manufacture the chips on its Intel 16 node, an upgraded version of the 22FFL node.

“We have the right mix of cutting-edge workflows and geographically dispersed capabilities to help MediaTek deliver the next billion connected devices for a variety of applications.”explains Intel Foundry Services (IFS) President Randhir Thakur.

In a statement, Mediatek says it chose Intel because IFS offers a platform optimized for high performance, low power consumption, and always-on connectivity.

Intel already announced Qualcomm and Amazon Web Services (AWS) as its first customers last year, including the fact that Qualcomm will eventually take advantage of the 20A compute node when it’s ready in 2024.

All things considered, this is certainly a big win for Intel as Mediatek is the world’s fifth largest factoryless semiconductor company. In addition, you will receive put IFS in the spotlight of the world as it tries to catch up with TSMC.

However, expansion plans in the US and Europe are an important part of its long-term strategy, so it will take several years to bear fruit.