MediaTek and Intel have introduced that some MediaTek processors might be manufactured by Intel Foundry Providers (IFS). At the moment, this manufacturing association will concern “sensible edge gadgets,” a fairly obscure description that might embody something related to a Wi=Fi/4G/5G wi-fi community.
That stated, IFS presently 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 plenty of momentum prior to now two years, breaking information quarter after quarter. MediaTek has launched extraordinarily aggressive platforms with a big market share within the sensible gadgets enterprise.
From MediaTek’s standpoint, it’s a diversification transfer as Intel is predicted to broaden/open manufacturing vegetation (“Fabs”) within the USA and Europe. Such diversification would shield MediaTek from supply-chain shocks as we’ve seen for the reason that Pandemic or potential geopolitical points associated to Taiwan.
Unsurprisingly, MediaTek presently contracts TSMC in Taiwan to fabricate most of its chips. Though TSMC does a stellar manufacturing job, it’s so large 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. Nonetheless, the diversification plans would make it far more resilient than it’s at present, though the economics may not be as optimum as pre-2020.
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