) has signed an agreement with Panasonic Corporation's System LSI
Business Division to produce system-on-chip (SoC) products for the
latter, using its proprietary 14-nanometer (nm) Tri-Gate transistor
Intel's Tri-Gate technology is a proprietary 3D transistor
technology and its 14-nm transistor technology for SoC is a highly
developed and enhanced version of the Tri-Gate process technology.
These transistors enable efficient and high performance chips
compared with the earlier versions of transistors. Therefore, this
allows chip designers to select transistors for low power or high
performance, based on the applications.
The chips produced will be used in audio visual equipment and
offer higher performance and functionality at lower power
The collaboration should be a positive for both the parties.
Intel's advanced manufacturing facilitates the fabrication of
highly integrated, more powerful chips that generate less heat at
lower costs. Therefore, Panasonic's SoC products using Intel's
technology will have a lead over chips offered by traditional
manufacturers like Taiwan Semiconductor Manufacturing Company.
For Intel, this is a golden opportunity to ramp up production at
its fabs and drive up utilization rates.
Recently, Intel expanded its foundry partnership with
) to manufacture advanced multi-die devices, using its 14-nm
low-power manufacturing process. Additionally, Intel's custom
foundry business has announced agreements with other semiconductor
companies namely Achronix Semiconductor, Tabula, Netronome and
We believe these agreements will be beneficial for Intel's
Custom Foundry business which should in turn drive up utilization
rates and boost results, going forward.
Intel is making all possible efforts to diversify its business
and reduce its dependence on the PC market, which is currently
suffering from declining sales globally. The company is applying a
number of strategies to increase its foothold in mobile, wearables
and Internet of Things. These are the emerging areas within the
technology space where companies like
), Google, Apple and Facebook are trying to build a position.
Currently, Intel sports a Zacks Rank #1 (Strong Buy).
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