MediaTek and Intel have introduced that some MediaTek processors will probably be manufactured by Intel Foundry Providers (IFS). At the moment, this manufacturing association will concern “sensible edge gadgets,” a fairly imprecise description that might embody something related to a Wi=Fi/4G/5G wi-fi community.
That mentioned, IFS at the moment operates 22nm (nanometer) Fabs, which might 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 a giant win for the younger (2021) Intel foundry companies enterprise as MediaTek has gathered numerous momentum up to now two years, breaking data quarter after quarter. MediaTek has launched extraordinarily aggressive platforms with a major market share within the sensible gadgets enterprise.
From MediaTek’s standpoint, it’s a diversification transfer as Intel is anticipated to develop/open manufacturing vegetation (“Fabs”) within the USA and Europe. Such diversification would shield MediaTek from supply-chain shocks as we’ve seen because the Pandemic or potential geopolitical points associated to Taiwan.
Unsurprisingly, MediaTek at the moment contracts TSMC in Taiwan to fabricate most of its chips. Though TSMC does a stellar manufacturing job, it’s so huge that it may very well be a single logistical choke level if any disaster occurs. Geopolitics apart, Taiwan can also be topic to Typhoons, droughts, and Earthquakes.
It is going to most likely take years for the semiconductor trade to surpass the present supply-chain points. Nevertheless, the diversification plans would make it far more resilient than it’s right now, regardless that the economics won’t be as optimum as pre-2020.
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