Intel And Arm Collaborate To Produce Mobile Chips At Intel Factory

JAKARTA - Intel Corp announced on Wednesday 12 that its chip manufacturing contract division will cooperate with UK-based chip designer Arm Ltd to ensure that mobile chips and other products using Arm technology can be manufactured at Intel plants.

Intel, formerly a big name in a chip known as the central processing unit (CPU), has seen its manufacturing advantages eliminated by competitors such as Taiwan Semiconductor Manufacturing Co Ltd (TSMC), a world leader in making chips for customers like Apple Inc.

Intel's directional change strategy relies in partially opening its factories to other chip companies, especially those engaged in the mobile phone sector. The company says companies like Qualcomm Inc plan to use its factories for chip design in the future.

"There is an increasing demand for computing power driven by digitalization of everything, but until now customers have limited choice to design around the most advanced mobile technology," Pat Gelsinger, CEO of Intel, said in a statement.

Meanwhile, Arm, which is owned by Japanese technology investor SoftBank Group Corp and plans to go public by the end of this year, is one of the main suppliers of intellectual property to many chip companies, especially on mobile phones.

Arm has partnerships with major chip contract manufacturers to ensure that the design will work well on their manufacturing process.

The partnership announced on Wednesday aims to put Intel in the same position as TSMC and Samsung Electronics Co Ltd from South Korea, two companies that currently produce most of the world's chips for mobile phones.