Last year, Intel announced changes in its operations and the opening of its own semiconductor product production capacities to other companies. Until now, Intel has been producing for its own needs in its factories, but the market situation, partly the general lack of semiconductors, and partly the increasing use of the ARM architecture, led the American company to look for new sources of income.
Taiwan’s MediaTek and Intel have entered into a strategic partnership in which Intel will manufacture future MediaTek chipsets. This does not mean that Intel will be the only manufacturer, but that it will fulfill a certain part of MediaTek’s orders. MediaTek’s products are based on ARM architecture, but this will not be a problem for Intel because the company has production capacity for ARM as well, although Intel’s main products are actually processors based on x86 architecture. MediaTek itself does not have its own production factories, but belongs to the category of “fableless chip designers”, just like Apple, whose orders are mostly fulfilled by TSMC and Samsung. For MediaTek, this partnership will strengthen the supply chain by moving part of the production, following the agreement with Intel, to Europe and North America. One interesting thing is that MediaTek is actually the largest supplier of processors for mobile devices with a share of 38% in the 1st quarter of this year, followed by Qualcomm (30%) and Apple (15%).