Intel Partners with Arm to Challenge TSMC’s Mobile Processor Market Dominance

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Intel’s has signed a partnership with Arm which has potential to revolutionize the chip manufacturing industry and impact the global chip-making landscape. The two company has signed a deal to focus on developing low-power compute system-on-chips (SoCs) using Intel Foundry Services (IFS), initially for mobile SoC designs before expanding to other industries such as automotive, Internet of Things, data centers, aerospace, and government applications.

The partnership between Intel and Arm will leverage Intel’s 18A process, which offers better power and performance, and will allow for manufacturing in Intel plants in the US and EU. This move is significant for both companies, with Intel aiming to become the second-largest foundry by revenue, and Arm powering hundreds of billions of devices, making them one of the biggest names in the chip industry.

This collaboration comes at a time when there are concerns over the stability of the semiconductor supply chain, especially in light of China’s recent military exercises involving Taiwan. TSMC, responsible for manufacturing nearly 70% of all critical chipsets used in modern smartphones, is located in Taiwan, raising concerns over potential conflicts on the island and the stability of the semiconductor supply chain. By collaborating with Arm, Intel is positioning itself as a viable alternative to TSMC, offering a more geographically diverse and secure chip production option for ARM licensees.

The move has garnered attention from the tech industry, with major players like MediaTek, Qualcomm, and Amazon already signing up to work with IFS. The partnership between Intel and Arm is expected to pave the way for the development of innovative low-power chips with broad applications in several industries, potentially having a significant impact on the market.

Intel CEO Pat Gelsinger stated that the collaboration with Arm would expand the market opportunity for IFS, providing an open system foundry with leading-edge process technology for any fabless company that wants to access the best-in-class CPU IP. Rene Hass, CEO of Arm, further emphasized the importance of the partnership between Intel and Arm, highlighting that Arm processors power hundreds of billions of devices.

Overall, the partnership between Intel and Arm could have far-reaching effects on the global chipmaking landscape, providing a more diverse and secure option for ARM licensees and paving the way for the development of innovative low-power chips in various industries.

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