Intel to Manufacture Qualcomm Chips

Qualcomm is one of the first two customers for Intel’s foundry business. Intel CEO Pat Gelsinger said the company will aggressively add manufacturing capacity to support further deals.

The tie-up was announced at an Intel company update covering its latest technology and product roadmap to 2025. Although revealing Qualcomm as one of its first Intel Foundry Services (IFS) customers, it offered limited details on the specifics of the deal and did not include timescales or volumes. “Both Intel and Qualcomm believe strongly in the advanced development of mobile compute platforms and ushering in a new era in semiconductors,“ Gelsinger stated.

Alongside the Qualcomm deal, Gelsinger announced Amazon Web Services had signed-up with IFS for its packaging systems. The agreements are the first unveiled since the launch of IFS in March, as part of Intel’s IDM2.0 strategy. Intel initially announced it would spend $20 billion on facilities in the US in an attempt to take advantage of growing demand for chip manufacturing capacity. It comes as authorities in the country are keen to widen supply chain options outside of Asia.

Gelsinger reiterated plans to announce new manufacturing sites in Europe and the US by the end of the year. “These will be large investments which will support mega fabs and is how we will help the world get to a more balanced, sustainable and secure supply chain,“ Intel CEO said. He added interest from potential customers in IFS had been strong with 100 leads in the pipeline across a range of industries.