MediaTek processors will also be produced in Intel factories

Intel announced last year that it would kick off a new initiative called Intel Foundry Services, which will allow other companies to use its factories to produce processors. That’s because until now, Intel used its factories exclusively for its own production, unlike Samsung or TSMC, which could sell manufacturing capacity to other partners. Now Intel is announcing the first partner to which it will provide part of its production: MediaTek, the Taiwanese company that makes processors for mobile devices.

MediaTek is the first major company to turn to Intel Foundry Services

MediaTek already has a long-standing partnership with Intel through which it supplies 5G modems for its products. Intel used to integrate its own mobile processor and modem division, which it sold to Apple a few years ago. Since then, Intel has been using such solutions from other partners.

With an existing relationship already in place, it wasn’t hard for the two companies to strike a new deal to produce processors in Intel’s factories as well.

The official announcement mentions that MediaTek is thus strengthening its supply chain for processor production, with the US and Europe specifically mentioned. Thus, it is possible that MediaTek will produce components in Intel factories for factories outside China.

“MediaTek has long adopted a multi-source strategy. We already have a partnership with Intel for 5G modems, and now we’re expanding our relationship into smart device manufacturing through Intel Foundry Services. With the company’s dedication to growing capacity, IFS adds value to MediaTek as we look to create a more diversified supply chain. We are focused on building a long-term partnership to serve the increased demand for our products from customers across the globe.”, said NS Tsai, corporate senior vice president of Platform Technology & Manufacturing Operations at MediaTek.