Intel adds Panasonic as foundry client

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

Intel (INTC -0.4%) has been hired by Panasonic (PCRFY) to manufacture SoCs aimed at A/V products. The chips will be made using Intel's next-gen 14nm process (recently began ramping).

Panasonic joins a list of Intel foundry clients that includes Altera and (reportedly) Cisco. The chip giant is leveraging its manufacturing process lead to further its efforts to be a "selective" foundry focused on high-margin deals. Nonetheless, many fabless chipmakers remain wary about having a rival handle IC manufacturing.

Pansonic's SoCs have been used in TVs, set-tops, and Blu-ray players. The Intel deal comes after an agreement by Panasonic to hand off 3 fabs to a 49/51 JV owned in tandem with TowerJazz.