MediaTek and Intel have introduced that some MediaTek processors will likely be manufactured by Intel Foundry Services (IFS). Currently, this manufacturing association will concern “smart edge devices,” a fairly obscure description that might embody something related to a Wi=Fi/4G/5G wi-fi community.
That mentioned, IFS at present operates 22nm (nanometer) Fabs, which may serve MediaTek’s Wi-Fi chipset line of merchandise, for instance. We don’t have sufficient knowledge to evaluate which merchandise Intel will work on.
It’s an enormous win for the younger (2021) Intel foundry companies enterprise as MediaTek has gathered a whole lot of momentum up to now two years, breaking data quarter after quarter. MediaTek has launched extraordinarily aggressive platforms with a big market share within the good units enterprise.
From MediaTek’s standpoint, it’s a diversification transfer as Intel is predicted to increase/open manufacturing vegetation (“Fabs”) within the USA and Europe. Such diversification would defend MediaTek from supply-chain shocks as we’ve seen for the reason that Pandemic or potential geopolitical points associated to Taiwan.
Unsurprisingly, MediaTek at present contracts TSMC in Taiwan to fabricate most of its chips. Although TSMC does a stellar manufacturing job, it’s so large that it could possibly be a single logistical choke level if any disaster occurs. Geopolitics apart, Taiwan can be topic to Typhoons, droughts, and Earthquakes.
It will most likely take years for the semiconductor business to surpass the present supply-chain points. However, the diversification plans would make it rather more resilient than it’s at the moment, although the economics may not be as optimum as pre-2020.
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