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Report: Intel, Cisco reach foundry deal

Posted: 04 Apr 2013     Print Version  Bookmark and Share

Keywords:manufacturing  networking chips  foundry  PC market 

Chipmaker Intel and Cisco have entered into a manufacturing partnership agreement, according to the Korea Times report.

The report quoted Lee Hee-sung, country manager at Intel Korea saying, “Intel has signed an agreement to manufacture Cisco’s networking chips on a contractual basis.”

However, there has not been any official announcement from either companies yet.

"The deal with Cisco looks significant. If Intel successfully produces chips with designs offered by Cisco, then it will get additional momentum to effectively grow its foundry business," said the report quoting a source at Samsung Electronics.

Intel may be world’s largest chip company, but its foundry business serves small customers such as Netronome, Achronix, Tabula, and Altera.

The Cisco deal, if true, could help Intel expand its foundry (contract manufacturing) business and attract large customers like Apple. Intel is looking to strengthen its other businesses, as its main PC market shrinks.

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