Intel will produce the chips of the company MediaTek

Intel

Intel will produce the chips of the company MediaTek.

U.S. chipmaker Intel Corp INTC.O said on Monday it will make chips for Taiwan’s MediaTek Inc 2454.TW, one of the world’s biggest chip design firms.

The production agreement is one of the most important agreements that Intel has announced since it launched its so-called “foundry business” at the beginning of last year.

One such business builds chips that other companies design, and Taiwan Semiconductor Manufacturing Co (TSMC) 2330.TW is a major player in that space.

Intel has mostly built chips that it has designed itself.

“This is a pretty big deal for us to engage a client from Taiwan and have them ‘bet’ us to grow and try this. And so this is a big win for the customer,” said Randhir Thakur, president of Intel Foundry Services.

While Intel did not provide any financial details of the deal or say how many chips it would produce for MediaTek, it said the first products would be produced in the next 18-24 months and would be on a “state-of-the-art technology process” called Intel 16, with the chips used for smart devices.

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