Intel and ARM Strike Multi-Generational Agreement to Optimize 18A Manufacturing Process for SoCs and Chips

Intel and ARM, two of the most important companies in the design of modern processors, are joining forces. In the middle of the week, the two companies announced that they had reached a “multi-generational” agreement to optimize Intel’s 18A manufacturing process for use in conjunction with ARM’s architecture and intellectual property.

The agreement does not foresee Intel’s Foundry Services division starting to produce processors, SoCs or chipsets for ARM itself but will allow companies licensed by ARM, including Qualcomm and MediaTek, to hire Intel to manufacture/produce chips on their behalf in the future. Initially, the two companies plan to focus on optimizing the Intel 18A manufacturing method for SoC (System-on-Chip) designs for mobile and mobile devices.

In the future, the two companies could expand their collaboration to manufacture SoCs and chipsets designed for application in the automotive industry, Internet of Things (IoT) devices and data centers. In addition, Intel’s support for ARM-licensed companies will extend beyond wafer production to include packaging, chiplet manufacturing, and even software development, suggesting that Intel envisions will function in the future as a “one-stop shop” for the companies that will hire it to produce their ARM architecture chips.

Of course, Intel is also quick to highlight the geopolitical implications of the deal. “This collaboration will enable the creation of a more balanced global supply chain for its customers designing SoCs based on ARM architecture processor cores,” read Intel’s announcement. According to an estimate by research firm Counterpoint Research published last July, TSMC (Taiwan Semiconductor Manufacturing Company) produces nearly 70% of the SoCs used in today’s smartphones. On Monday, China concluded a three-day military exercise simulating an operation to seize Taiwan.

The exercise has heightened fears of an imminent military operation on the island, and naturally, the US – and Europe – are concerned, among other things, about possible problems in the supply chain.