Great collaboration agreement
What we have now learned is that Intel will start manufacturing processors for MediaTekin such a way that with this new large volume of orders that will come in from the Chinese giant, it will be able to face the tough competition posed by giants such as Samsung or TSMC in this market. At the moment it seems that the processors that will be manufactured will be far from the most modern standards, since they will be 16 nanometers, far from the minimum 10 or 12 nanometers that we find in current smartphones. But obviously it will be a big step to be able to supply MediaTek processors to a large number of other types of devices that also need them.
As with so many other chip developers, MediaTek is a company that designs its processors from start to finish, but does not have the power to manufacture them, something that is only available to large manufacturers such as Intel, or as in the past, TSMC, which has also been a great collaborator of the firm. In this way, Intel wins a very important client, which in recent years has become one of the main manufacturers, along with Qulacomm, of processors for mobile equipment throughout the world.
MediaTek diversifies its supplier portfolio
What the Chinese giant is doing is diversify your suppliers, as long as they can increase their production and meet the growing demand that has been so difficult to meet in recent years. MediaTek processors are no longer synonymous with poor performance, far from it, and we can already see many high-end mobiles with their processors, not only in the entry-level range. And most importantly, with high penetration rates in the western market. Gone is that of launching editions of phones in the West with Qualcomm processors to the detriment of MediaTek. Now these processors are just as well valued, which has resulted in an increase in demand, which the brand cannot currently meet.
And it is that MediaTek not only manufactures processors for smartphones, but also for all kinds of 5G communications devices or the Internet of Things, which in turn need specific chips to function properly. Undoubtedly a new alliance that adds fuel to the fire of this market, which is now red hot. And that is also a boost for Intel, which increasingly manufactures for more important companies in the industry, and not only subsists on its own processors.