Intel has closed an agreement to manufacture the mobile processors of the Taiwanese company MediaTek, Qualcomm's biggest rival in the semiconductor business for smartphones and which until now used TSMC's factories to create its chips. These processors are used by various Asian brands, especially in mid-range and low-end phones. MediaTek thus becomes Intel's first major partner for the new third-party chip manufacturing strategy launched by Intel CEO Pat Gelsinger last year.
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Until now, Intel has limited itself to manufacturing its own X86 architecture processors for the PC market. This architecture is fundamentally different from that of mobile processors, which today are mostly manufactured in TSMC and Samsung plants (together they account for 70% of production for brands such as Qualcomm, Google or Apple, among others). The decision has taken its toll on the company. Although it remains one of the world's largest semiconductor manufacturers, it has missed a historic opportunity to control the mobile phone market as it does the PC market. Although he tried once in the past, his plans never came to fruition.
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Now the company plans to invest more than $40 billion to open new chip factories - known in the industry as "foundries" - in various regions of the world. Part of the production of these factories will continue to be used for PC processors and accessory chips, such as controllers for ports or chips for connecting to Wi-Fi networks.
But another part will go to the manufacture of processors with rival architectures for third-party companies, such as MediaTek in this case. Gelsinger has even expressed interest in also taking over Apple's chipmaking business, which is now in the hands of TSMC.
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