MediaTek uses Intel to manufacture its chips

MediaTek uses Intel to manufacture some of its chips, which should make the company more resilient than it is today.

MediaTek and Intel have announced that some MediaTek processors will be manufactured by Intel Foundry Services (IFS). Right now, that manufacturing diagram is for “smart peripherals,”a vague description to say the least that could cover anything that uses Wi-Fi, 4G, and 5G wireless networks remotely.

MediaTek uses Intel to manufacture some of its chips

That being said, IFS is currently running on a 22nm process which is ideal for MediaTek’s Wi-Fi chip line. However, we don’t have enough data to know exactly which products Intel will be working on.

In any case, this is a clear success for the young Intel Foundry Services, as MediaTek has made tremendous progress over the past two years, setting new records quarter after quarter. MediaTek has launched extremely competitive platforms with ever-growing smart device market share.

From MediaTek’s perspective, this is a step towards diversification as Intel is expected to expand or open factories in the US and Europe. This diversification will protect MediaTek from the supply chain problems we’ve seen since the pandemic, or geopolitical worries around Taiwan.

What should make a company more resilient than it is today

Not surprisingly, MediaTek currently uses TSMC in Taiwan to manufacture most of its chips. While TSMC is doing a fantastic job, the company is so big that the consequences of going bankrupt could be catastrophic. Geopolitics aside, Taiwan is also regularly hit by typhoons, heavy rains, and other earthquakes.

It will likely be several years before the semiconductor industry can overcome its current supply chain challenges. At the same time, these projects to diversify sources should make the company more sustainable than it is today, although the economy is no longer the same as it was before 2020.