Intel-TSMC pact on Atom chips remains on hold

From InfoWorld: A pact announced last year for Taiwan Semiconductor Manufacturing (TSMC) to go to work putting Intel Atom microprocessors into smartphones, mobile Internet devices, and other gadgets looks to remain on hold for a while.

The agreement between the two companies was announced as an important way for Intel to access markets it could not reach on its own. The strategy to work with TSMC is similar to that of Intel rival Arm Holdings, in that Arm provides blueprints for its processors to TSMC, which uses them to build complex chips such as those used in smart phones. Those chips perform several functions, including signal processing, computing, image processing, screen control, and more.

The announcement caused excitement for TSMC because it would have provided a rare opportunity for an outside company to produce Intel microprocessors. Intel manufactures its own chips, and closely guards its intellectual property. The deal also indicated that Intel was moving on its plans to compete against Arm in power-efficient processors for mobile devices.

The issue was raised at TSMC's investor conference last week, when analysts asked the company's chairman, Morris Chang, when the first Atoms would roll off TSMC production lines. He said the partnership with Intel remained on hold and that there had been no news for the past six months.

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