Chip designer MediaTek Inc (聯發科) has formed a strategic partnership with Intel Corp to manufacture chips using the US company’s matured process technology as the Taiwanese firm aims to build more resilient and balanced foundry sources, the companies said yesterday.
The agreement will help MediaTek add a new foundry partner with significant capacity in the US and Europe, according to the joint statement said.
“Building on the existing 5G data card venture with Intel, MediaTek is extending the partnership into Intel Foundry Service (IFS) to mature Intel 16 node to support our fast-growing smart edge devices,” MediaTek said in a joint statement.
Photo: David Chang, EPA-EFE
MediaTek said it is to adopt Intel's Intel 16 process node, which is comparable to Taiwan Semiconductor Manufacturing Co's (TSMC, 台積電) 22-nanomter process node, to produce chips used in TVs, routers and other smart-home devices.
“In addition to maintaining a close partnership with TSMC in advanced process nodes, this collaboration [with Intel] will enhance MediaTek’s supply for mature process nodes,” the company said. “We believe this collaboration will help our further market expansion in global smart edge devices”
MediaTek is one of the early adopters of TSMC’s most advanced process technologies such as 4-nanometer and 7-nanometer technologies to build their smartphone chips.
MediaTek is “our long-term customer and we have a strong partnership in advanced technology collaboration. There is no impact on TSMC’s business with MediaTek,” TSMC said of MediaTek’s deal with Intel.
MediaTek has long adopted a multi-sourcing strategy, N.S. Tsai (蔡能賢), corporate senior vice president of the firm’s platform technology and manufacturing operations, said in the statement.
The company already partners with Intel on the 5G data card business, and aims to deepen their collaboration to smart edge devices through IFS, Tsai said.
Intel established IFS last year to help meet rising demand for advanced semiconductor manufacturing capacity. The company recently announced factory expansions at existing sites, as well as plans for major investments in new sites in Ohio and Germany.
“We have the right combination of advanced process technology and geographically diverse capacity to help MediaTek deliver the next billion connected devices across a range of applications,” IFS president Randhir Thakur said in the joint statement.
ELECTRONICS BOOST: A predicted surge in exports would likely be driven by ICT products, exports of which have soared 84.7 percent from a year earlier, DBS said DBS Bank Ltd (星展銀行) yesterday raised its GDP growth forecast for Taiwan this year to 4 percent from 3 percent, citing robust demand for artificial intelligence (AI)-related exports and accelerated shipment activity, which are expected to offset potential headwinds from US tariffs. “Our GDP growth forecast for 2025 is revised up to 4 percent from 3 percent to reflect front-loaded exports and strong AI demand,” Singapore-based DBS senior economist Ma Tieying (馬鐵英) said in an online briefing. Taiwan’s second-quarter performance beat expectations, with GDP growth likely surpassing 5 percent, driven by a 34.1 percent year-on-year increase in exports, Ma said, citing government
‘REMARKABLE SHOWING’: The economy likely grew 5 percent in the first half of the year, although it would likely taper off significantly, TIER economist Gordon Sun said The Taiwan Institute of Economic Research (TIER) yesterday raised Taiwan’s GDP growth forecast for this year to 3.02 percent, citing robust export-driven expansion in the first half that is likely to give way to a notable slowdown later in the year as the front-loading of global shipments fades. The revised projection marks an upward adjustment of 0.11 percentage points from April’s estimate, driven by a surge in exports and corporate inventory buildup ahead of possible US tariff hikes, TIER economist Gordon Sun (孫明德) told a news conference in Taipei. Taiwan’s economy likely grew more than 5 percent in the first six months
SMART MANUFACTURING: The company aims to have its production close to the market end, but attracting investment is still a challenge, the firm’s president said Delta Electronics Inc (台達電) yesterday said its long-term global production plan would stay unchanged amid geopolitical and tariff policy uncertainties, citing its diversified global deployment. With operations in Taiwan, Thailand, China, India, Europe and the US, Delta follows a “produce at the market end” strategy and bases its production on customer demand, with major site plans unchanged, Delta president Simon Chang (張訓海) said on the sidelines of a company event yesterday. Thailand would remain Delta’s second headquarters, as stated in its first-quarter earnings conference, with its plant there adopting a full smart manufacturing system, Chang said. Thailand is the firm’s second-largest overseas
Taiwan Semiconductor Manufacturing Co’s (TSMC, 台積電) market value closed above US$1 trillion for the first time in Taipei last week, with a raised sales forecast driven by robust artificial intelligence (AI) demand. TSMC saw its Taiwanese shares climb to a record high on Friday, a near 50 percent rise from an April low. That has made it the first Asian stock worth more than US$1 trillion, since PetroChina Co (中國石油天然氣) briefly reached the milestone in 2007. As investors turned calm after their aggressive buying on Friday, amid optimism over the chipmaker’s business outlook, TSMC lost 0.43 percent to close at NT$1,150