▲ Mode 3 at Intel's Hillsborough D1X plant in Oregon, expanded with a $3 billion investment (Photo - Intel)

Intel and MediaTek Plan to Manufacture New Chips for Wide Range of Smart Edge Devices

Intel has secured a prominent fabless customer by winning a chip manufacturing order from MediaTek, a company with which Taiwan's TSMC has a similar performance partnership. Amidst the strengthening of the semiconductor alliance between Taiwan and the United States, Intel is beginning to stir in the foundry market.

Intel and MediaTek announced on the 25th that they have entered into a strategic partnership regarding chip manufacturing using Intel Foundry Services (IFS)'s advanced process technology. Through this partnership, MediaTek is set to build a more balanced and resilient supply chain by adding a new foundry partner with outstanding manufacturing capabilities in the U.S. and Europe.

MediaTek plans to manufacture chips for various smart edge devices using Intel's process technology. IFS provides a comprehensive manufacturing platform that includes technologies optimized for high-performance, low-power, always-on connectivity, based on a roadmap ranging from production-proven 3D FinFET transistors to next-generation innovations.

MediaTek, which has secured a high market share in the mid-to-low-end AP market, ranked second with 26.3% of the AP market share last year, following Qualcomm, according to Counterpoint Research. In particular, it was found to have an AP market share of approximately 40% for smartphones sold in China.

MediaTek is known to be a "soul partner" to TSMC and accounts for a significant portion of TSMC's production volume. MediaTek's 'Dimensity 9000' series and its recently launched IoT semiconductor 'Genio 1200' series were produced through TSMC's foundry services. With MediaTek, which has close ties with TSMC, choosing Intel's foundry, the company has highlighted its multi-sourcing strategy.

NS Chai, Senior Vice President of Platform Technology and Production Operations at MediaTek, said, “MediaTek has long adopted a multi-sourcing strategy,” adding, “We have partnered with Intel to conduct the 5G data card business, and are now expanding our collaboration to the manufacturing of smart edge devices through Intel Foundry services.” He also predicted, "In accordance with Intel's plans to expand its manufacturing capabilities, IFS will add value to MediaTek as it seeks to build a more diverse supply chain," adding, "MediaTek will establish a long-term partnership to meet the surging demand for our products across customers worldwide."

▲ Intel Hillsborough D1X Factory Cleanroom (Photo - Intel)

Randir Thakur, President of IFS, stated, “MediaTek, one of the leading fabless semiconductor design companies driving over 2 billion devices annually, is a very important partner for IFS to grow to the next level,” adding, “Intel possesses advanced process technology and geographically diverse production capabilities, which will help MediaTek deliver an additional 1 billion connected devices covering a wide range of applications.”

Intel stated, "We provide foundry services differentiated from other foundries through advanced manufacturing processes and packaging technology, a world-class IP portfolio, and production capabilities in the U.S. and Europe," adding, "IFS will provide better services to customers based on the expansion of existing production facilities as well as new investments in Ohio and Germany."

IFS was established in 2021 to meet the surging global demand for advanced semiconductor manufacturing capabilities. In February, it demonstrated its aggressive expansion amidst the semiconductor supply shortage by even announcing its entry into the automotive semiconductor foundry business.