Things are about to get really hot in the mobile chipset industry. Intel has announced its intention to fabricate 64-bit ARM chipsets next year, in a bid to get a foothold in the mobile segment.
A Forbes report talks about Intel’s partner Altera making the announcement at the ARM developers’ conference. The move will potentially cause a rift in the fabrication industry as Intel competes with Taiwan Semiconductor Manufacturing (TSMC), the leader in the foundry business, Samsung and UMC, which is the fab for low-cost MediaTek’s chipsets. And the American giant will undoubtedly add all its marketing and production muscle to lure Qualcomm, Nvidia and other chipset makers to their ARM chip fabs.
Big announcement from Intel
Considering its own interests in the mobile chipset space, Intel essentially wants the competition’s fabrication business, but will continue to fight them for a larger market share. The potential combination of powerful 64-bit ARM chips produced by Intel’s state-of-the-art and pedigreed fabs could be a highly lucrative option for SoC makers, but it’s undoubtedly a big bet on Intel’s part.
Will rivals like Qualcomm and Nvidia flock to Intel’s factories or will TSMC’s long-standing reputation and market relationship make Intel’s task a monumental one? We’ll only know next year. But Forbes believes that this could lead to a decline in pricing of chips with Intel’s future competition tries to out-price the chip giant.
Publish date: October 31, 2013 10:48 am| Modified date: January 7, 2014 11:55 am