MediaTek reduces dependency on TSMC by outsourcing chip production to

MediaTek reduces dependency on TSMC by outsourcing chip production to Intel and GlobalFoundries

Decreasing dependence on TSMC and its Taiwanese companies will be one of the important trends for MediaTek, as in the coming years Make clear CEO of this developer of mobile processors Rick Tsai (Rick Tsai). MediaTek itself does not manufacture processors and entrusts their production to contractors, and now GlobalFoundries and Intel should join the traditional TSMC.

    Image source: Mediatek

Image source: Mediatek

As MediaTek’s CEO explained, the principle of geographical diversification will remain dominant in selecting a combination of contractors for the company as over-reliance on Taiwan worries not only the company itself but also its customers. Big consumers of semiconductor products, Mr. Tsai said, will require chip suppliers to use multiple product sources: Taiwan will be combined with the US or Europe. MediaTek is preparing for such demands, gradually expanding the geography of its chip production, which is not limited to Taiwan.

Expecting to increase the sales volume of its chips in the US market over time, MediaTek is ready to pay close attention to the localization of production. MediaTek hopes to become a customer when TSMC’s Arizona chip manufacturing facility comes online. In addition, GlobalFoundries, which has factories in New York State and Singapore, will deal with the release of processors of this brand. True, in this case we will talk about using not the most advanced lithography, but here it is more important to ensure the diversification of sources.

Intel, which has repeatedly announced a collaboration with MediaTek, will begin supplying it with chips made with Intel 16 technology at a company in Ireland from the second half of 2024, Rick Tsai explained. These components will find applications in televisions and Wi-Fi routers and do not require advanced lithography to manufacture them. This market segment is large enough that the company is seriously considering working with Intel. The head of MediaTek personally monitors progress in this area almost every month.

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