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Intel Aims to Boost Foundry with ARM Licensing Agreement

By Diana Goovaerts | August 17, 2016

Semiconductor producer Intel is attempting to woo more third-party companies to use its foundry services via a new licensing partnership with competitor ARM Holdings.

Intel said Tuesday it will now offer customers access to ARM’s Artisan physical IP, including POP IP, for its 10 nanometer productions lines used in fabricating mobile and Internet of Things (IoT) chips.

According to Bloomberg, the agreement with ARM could open the door for fabrication deals with the likes of Qualcomm and Apple, which currently have their chips produced in Taiwan.

The move comes as Intel looks to boost revenue in the mobile and connected gadget segment amid a slump in demand for personal computers and their components. In the second quarter, sales in the company’s PC division fell three percent to $7.3 billion.

Under CEO Brian Krzanich, Intel’s foundry is finally starting to gain some steam.

The company on Tuesday also announced a deal with LG Electronics that will see the smartphone maker “produce a world-class mobile platform based on Intel Custom Foundry’s 10 nm design platform.”

In a separate announcement, Intel said it is stepping up its presence in the IoT space with the introduction of its new Joule compute maker module. Intel said the new module will help IoT developers turn a concept into a prototype and then push it into production at a reduced time and development cost.

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