Intel Corp has announced that it will collaborate with Arm Ltd, a U.K.-based chip designer, to manufacture mobile phone chips and other products using Arm’s technology in Intel’s factories.
The move is part of Intel’s turnaround strategy, which involves opening up its factories to other chip companies, particularly those in the mobile phone industry.
Once a leader in central processing units (CPUs), Intel has seen its manufacturing edge blunted by rivals such as Taiwan Semiconductor Manufacturing Co Ltd, the world leader in making chips for major customers like Apple Inc. In response, Intel is expanding its customer base by offering its advanced manufacturing capabilities to other chip companies.
“There is growing demand for computing power driven by the digitization of everything, but until now … customers have had limited options for designing around the most advanced mobile technology,” said Pat Gelsinger, Intel’s chief executive.
Arm, which is owned by Japanese technology investor SoftBank Group Corp, is a major supplier of intellectual property to many chip companies, especially in the mobile phone industry. Arm has partnerships with major chip contract manufacturers to ensure that its designs will work well on their manufacturing processes.
The partnership between Intel and Arm will allow Arm’s technology to be manufactured in Intel’s factories, providing customers with more options for designing around the most advanced mobile technology. The move is expected to benefit both companies, as Intel looks to expand its customer base and Arm seeks to increase the reach of its intellectual property.
Intel has already announced plans to work with Qualcomm Inc, a major player in the mobile phone industry, to design future chips using its factories. The partnership with Arm is another step in Intel’s efforts to regain its position as a leader in the chip industry.
The sources for this piece include an article in Reuters.