Tech giants Intel and ARM have announced a multigenerational agreement to optimize Intel’s upcoming 18A fabrication process for use with ARM designs and intellectual property. This move marks a significant shift for Intel, which has primarily focused on developing its own chips. The deal, however, won’t see Intel’s Foundry Services division producing chipsets for ARM. Instead, it aims to enable ARM licensees, including the likes of Qualcomm and MediaTek, to hire Intel to manufacture chips in the future.
Initially, the partnership will concentrate on optimizing Intel 18A for mobile system-on-a-chip designs, with potential extensions to silicon for use in cars, IoT devices, and data centers. Intel envisions itself as a one-stop shop for companies wanting ARM designs, offering support that extends beyond wafer production to include packaging, software, and chiplets.
Apart from improving the balance of the global supply chain for foundry customers working on ARM-based CPU cores, the companies are also emphasizing the geopolitical implications of the partnership. According to Counterpoint Research, Taiwan Semiconductor Manufacturing Company (TSMC) produces almost 70% of all chipsets critical to modern smartphones. The announcement comes amid rising tensions in the region, with China concluding a three-day military exercise that involved the encirclement of Taiwan, escalating fears of an impending war.
Intel’s shift towards optimizing its fabs for ARM chip manufacturing represents a significant move in the chipmaking industry. While the agreement may not lead to Intel directly producing chipsets for ARM, the company’s newfound willingness to collaborate with competitors is a notable step forward. Furthermore, the partnership will provide ARM licensees with more options and increased access to Intel’s leading-edge manufacturing technology, potentially creating a more diversified and balanced supply chain for the industry.
