From 2025, Intel will also manufacture Qualcomm chips

Qualcomm and Amazon will also produce semiconductors for Intel from 2025, bringing the first two large customers in the largest U.S. chip maker’s emerging contract manufacturing business, the company said on Monday. The company is expected to catch up with its Asian rivals, primarily Taiwan Semiconductor Manufacturing Company (TSMC) and Samsung, within a few years.

It is not yet known for sure whether the announcement may have anything to do with the rumor aired by The Wall Street Journal in mid-July. According to the paper, Intel is preparing to acquire GlobalFoundries, a contract manufacturer, sources know the $ 30 billion deal is just to help the processor manufacturer’s contract manufacturing efforts.

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The rumor aired by WSJ is not surprising in light of Intel’s stated intention to become a dominant player in the contract manufacturing market, putting competition between TSMC and Samsung. Although the chip maker had previously offered such a service, very few took advantage of the opportunity.

At the same time, Pat Gelsinger, who has been leading Intel since the beginning of the year, sees the future of his company in part in contract manufacturing. This is because a significant increase in production volume can contribute to recovering ever-increasing research and development costs as quickly as possible.

So far, Intel has not disclosed details of the volume of production and potential sales promised by the deal with Qualcom and Amazon. Pat Gelsinger, the company’s CEO, said in the announcement all that Intel is hiring for a “dominant” mobile platform from Qualcomm and that the two companies are working closely together.

In any case, Intel (will) not be the only strategic partner for Qualcomm, which does not have its own production lines, as the company manufactures semiconductors used for different purposes (system chips, target processors) with almost all major contractors, and even qualcomm chips of the same type. from other manufacturers.

Amazon, however, analysts say will only order encapsulation of “bare” chips from Intel.

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