Intel to produce Taiwanese company MediaTek's chips

OAKLAND, Calif : U.S. chipmaker Intel Corp said on Monday it will produce chips for Taiwan’s MediaTek Inc, one of the world's largest chip design firms.

A foundry business builds chips that other companies design and Taiwan Semiconductor Manufacturing Co is the top player in that space. Intel has mainly built chips it designed itself. TechInsights’ chip economist Dan Hutcheson said there were doubts in the industry on whether Intel could pull off the foundry business, but the deal with MediaTek shows it’s on the right path and its investments, including in recruiting the right executives, are paying off.

While Intel didn’t give any financial details of the deal or say how many chips it would be producing for MediaTek, it said the first products would be manufactured in the next 18- to 24- month period and will be in a more mature technology process called Intel 16, with the chips used for smart devices.

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