Intel is aiming to widen the market for its Atom processor following its semiconductor IP and outsourcing deal with foundry TSMC.
As reported in Electronics Weekly at the weekend, an agreement between the companies will see Intel port its Atom processor CPU cores to the TSMC technology platform including processes, IP, libraries, and design flows.
Intel executives confirmed that the company would continue to make Atom processors in its own fabs in addition to the deal with TSMC.
The intention is clear "to significantly broaden the market opportunities for its Intel Atom SoCs and accelerate deployment of the architecture through multiple SoC implementations".
The Atom processor is aimed at embedded SoC designs for mobile phones and this represents a relatively new market for Intel.
According to Europe’s leading semiconductor analyst, Malcolm Penn, CEO of Future Horizons, Intel's traditional cost structure which is geared toward higher value PC processors does not fit with the economies of the mobile market, which is largely based on processors embedded into Asics and system-on-chip (SoC) devices.
"It’s pushing the leading edge, pushing the technology. Its conventional microprocessors can absorb all that cost - Intel still gets an average of about $100 for its processors – but you turn that structure to making inherently lower cost products and it doesn’t work,” commented Penn.
The key for both companies is how to generate new business in the emerging market for multimedia mobile phones and mobile Internet devices which is based on SoC devices with embedded processors.
“TSMC values our strategic relationship with Intel. We expect this collaboration will help proliferate the Atom processor SoC and foster overall semiconductor growth,” said Dr. Rick Tsai, president and CEO of TSMC.