Intel to start manufacturing ARM chips for rivals

At the ARM developers’ conference earlier today, the company Altera, a partner of Intel’s has announced that their new 64-bit ARM chips will be manufactured by the world’s number one chip manufacturer.

The news means that the landscape in the mobile processing space, in which Intel has been lagging, may soon change dramatically with the giant company going head to head with Samsung and TSMC.

And while this may make strategic and business sense for Intel, which is viewed as having the best semiconductor foundries around, it may also work well for consumers by combining Intel’s awesome output capacity and technology with the latest ARM chips. This may end up bringing us better processors for lower prices as the other manufacturers start feeling the pressure of such an immense player joining the game.

Lastly this gives Intel time and a lifeline until its own chips surpass or at least compete effectively with the likes of Nvidia and Qualcomm.

Source: Forbes | Image: WCCFTech

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It is a good day for intel from business perspective; but sad day otherwise. They still cant failed to bring out a mainstream phone with intel processor...

I think the only problem by this is Intel will try to fix prices of ARM chips... Which could drive prices of devices using ARM processor up in price to consumers.

True... But Intel will hold a big monopoly on ARM chips, as they have the ability to produce a huge amount of processors, than other companies.

Star-Pirate said,
True... But Intel will hold a big monopoly on ARM chips, as they have the ability to produce a huge amount of processors, than other companies.

do you even know what monopoly means?

And their production is still capped by fab capacity, I'm quite sure that fabbing their own x86 chips will still be priority and they are simply offering whatever extra capacity they have for whoever wants to rent it. The news here is that they have a new item on their inventory: ARM chips.

But those chips are only made at Intel using their factories, that is it. It in anyway wont make intel bring their own ARM into market faster, would it ?? or rather help them to make better ARM processors compare to Qualcomm ??

Okay.. big but also small news. It's not their own chips. AFAICT, it's like Sony producing digital sensors for Nikon. They are still Nikon sensors, just made by Sony

More like MORE Apple chips made by Intel (remember, the CPUs in their Macs and MacBooks are Intel Inside). That has, in fact, been Intel's biggest curse - their foundry capacity. Curse? Yes - curse. Intel can't afford to have those foundries cranked up even to eight on the capacity dial, let alone ten or eleven - they would drive pricing through the floor. And I'm NOT talking CPUs or even chipsets.

PGHammer said,
More like MORE Apple chips made by Intel (remember, the CPUs in their Macs and MacBooks are Intel Inside). That has, in fact, been Intel's biggest curse - their foundry capacity. Curse? Yes - curse. Intel can't afford to have those foundries cranked up even to eight on the capacity dial, let alone ten or eleven - they would drive pricing through the floor. And I'm NOT talking CPUs or even chipsets.

That makes absolutely no sense what so ever - Intel only build the amount they require; they don't magically just build more and by mere existence of CPU's sitting around that demand increases as well.

PGHammer said,
More like MORE Apple chips made by Intel (remember, the CPUs in their Macs and MacBooks are Intel Inside). .

No that's wring. Because they are Intel chips designed by and made by Intel and sold as Intel. This new architecture is designed by someone else, made by Intel, and sold as something else. The Sony/Nikon analogy is more correct

PGHammer said,
.....

Agreed. Apple have been looking to get out from under Samsung for a long time.

I didn't know Intel's foundries had such unused capacity, which of course if they actually dialed up as you claimed for their own technology lines, the prices would drop through the floor as you had indicated. Simple supply side economics tells that tale.

Increasing supply without a relative increase in demand lowers the prices.

Enabling profits from unused capacity is what I believe you are talking about here. Leasing time to ARM fabrication seems like a great option.

panacea said,
HOLY SMOKES

this changes everything!!!

Not really, they've always leased out capacity to third parties who wanted their chips fabricated by Intel. You give them the design and they build it - no difference to TSMC or Global Foundries.