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Foundry MediaTek, Intel was exposed to meet additional conditions

Electronic Times reported that, according to industry sources, Intel and MediaTek announced a strategic partnership yesterday (25), with the additional condition that Intel needs to introduce its own Wi-Fi 6 chip technology to enhance MediaTek’s business in the field.

Sources said that one of the conditions of the partnership is that Intel must join IC design company Rene, the introduction of Intel PC processor Wi-Fi 6 chip technology, and work with Rene to develop other chip sources.

Intel (INTC) to Spend $7 Billion on Malaysia Chip Factory Expansion -  Bloomberg

Intel also cut its foundry’s offer to ensure that it takes MediaTek’s order, the sources said. MediaTek will use Intel’s 16nm process technology to manufacture its edge device chips.

Currently MediaTek’s order cooperation is mainly in TSMC and UMC. MediaTek placed orders for 7nm and sub-7nm chips with TSMC, and 28nm chip orders with UMC, the sources said. MediaTek’s orders to Intel may not be as substantial as those with other foundry partners, but it’s an important step for Intel’s foundry business, the sources noted.

Industry watchdog TechInsights chip economist Dan Hutcheson (Dan Hutcheson) for Intel to take orders from MediaTek, said the industry has doubts about whether Intel can complete the foundry business, but the deal with MediaTek shows that it is on the right path, in addition, it also represents Intel’s investment is paying off.

Announced to the public in March 2021, Intel Foundry Services (IFS) is said to differentiate itself from other foundry offerings by combining advanced process technologies and packaging, delivering committed capacity for the US and Europe, and supporting production of x86 core, ARM and RISC-V ecosystem IP.

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