Intel expands foundry partnership with Altera

|About: Intel Corporation (INTC)|By:, SA News Editor

Intel's (INTC -0.2%) foundry deal with Altera (ALTR -1.2%), first announced a year ago, has been expanded to include chip packages that combine Altera's next-gen Stratix 10 FPGAs (set to be manufactured using Intel's cutting-edge 14nm process) with DRAM, SRAM, ASICs, and other chips.

Intel and Altera declare the packages will combine the density/integration benefits of its traditional 2.5D/3D chip-packaging approaches with "favorable economic metrics," and that Altera's Intel-manufactured FPGA chip dies will offer unmatched densities and component integration.

Altera is counting on Intel's manufacturing expertise to give it an edge over archrival Xilinx (XLNX -0.8%), which continues to rely on TSMC (TSM +0.4%).

TSMC also happens to be Altera's traditional foundry partner. Xilinx began shipping FPGAs based on the foundry's new 20nm process last fall.

Intel has said it plans to be a "selective" foundry for 3rd-party chipmakers, one focused on higher-margin/value-add deals. In addition to Altera, the chip giant may have landed Cisco as a client.