Printed from http://www.electronista.com

Intel begins chip fabrication for third parties

updated 06:20 am EDT, Mon November 1, 2010

Will build Achronix Semiconductor design

Intel will enter the chip contract marketing business, joining the likes of Samsung and several Taiwanese and Chinese fabricators by making third-party designs. The New York Times reports that beginning next year, Intel will leverage its massive multi-billion dollar fabrication operations to manufacture silicon penned by a small semiconductor designer, Achronix.

The chips that Intel will manufacture for Achronix have specialized functions and do not compete in the same space as Intel. They are principally designed for directing and optimizing network traffic and for the encryption of data, but the move has led to analysts speculating about Intel's plans.

While the agreement will amount to no more than 1 percent of Intel's production capacity, it is an interesting strategy that Intel may be able to capitalize on when the market demand cycle dips, leaving it with surplus production capacity that it will now be able to utilize.

From Achronix's perspective, the move will allow them to make better, faster products for reduced costs that will give the company a competitive edge over its opposition in a market space that is worth $3 billion.



By Electronista Staff
Post tools:

TAGS :

toggle

Comments

  1. samirsshah

    Fresh-Faced Recruit

    Joined: Oct 2010

    +1

    A good strategy by Intel

    if ARM succeeds and x86 flops (which is a distinct possibility)

Login Here

Not a member of the MacNN forums? Register now for free.

toggle

Network Headlines

toggle

Most Popular

Sponsor

Recent Reviews

Cat B100

Cat is primarily known for its heavy-duty machinery used in the construction industry and farming, among other areas. What may not be ...

Linksys EA6900 AC Router

As 802.11ac networking begins to makes its way into more and more devices, you may find yourself considering an upgrade for your home ...

D-Link DIR-510L 802.11AC travel router

Having Internet access in hotels and other similar locations used to be a miasma of connectivity issues. If Wi-Fi was available, it wa ...

Sponsor

toggle

Most Commented

 
toggle

Popular News