Intel Manufactures Altera's Chips, Helps Marginalize Taiwanese Fabs | TechTree.com

Intel Manufactures Altera's Chips, Helps Marginalize Taiwanese Fabs

Intel is also expected to tie-up with other smaller CPU designers. In the long run, this may snatch lucrative deals away from Taiwan-based manufacturers who are taking steps towards establishing their own fabrication plants.

 

Computer CPU manufacturing giant, Intel has finalized a deal to manufacture chips for Altera. This could lead to Intel catering to customers on a large scale, potentially even to leading consumer electronics manufacturer Apple. Reuters says that Intel will use its new 14 nanometer (14nm) trigate transistor technology to manufacture programmable chips for Altera.

Apparently, Intel has tie-ups to manufacture chips for customers, with its PC processors not seeing the gains expected by the company. This move could also balance out costs whenever any new technology is developed. Notably, this is Intel's latest technology introduction for the year, and I'm guessing Intel's own 14nm chips won't make it to the mainstream at low prices this year. It could mean that Intel would recover part of its foundry investment costs from this deal, to a greater extent that it would have done so alone.

Mr Sunit Rikhi, Intel custom foundry's Vice President and General Manager was quoted last month as saying, "It's a step in terms of building into a business level we wish to achieve."

Intel has also stated that it was open to inking deals with select partners, as long as its competitors don't benefit. Reuters states the partners may have intended to manufacture their chips via agreements with Achronix Semiconductor Corp among others. Apart from this, analysts believe that there could be a situation where Intel manufactures processors on behalf of Apple for iPhone and iPad, since it has not established itself in the world of manufacturing processors for smartphones and tablet computers.


Related Read: Intel Plans Online TV Service As PC Chip Sales Wane


TAGS: Intel, computers, processors

 
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