Intel’s budding Foundry Will Make Cisco designed Chips- CSCO
Intel Corp. (NASDAQ:INTC) will be manufacturing chips designed by Cisco Systems Inc. (NASDAQ: CSCO). Under an agreement the California based company will be granted the right to use Cisco Systems Inc. (NASDAQ:CSCO) ‘s designs and make customized computer chips.
The deal could lead Intel Corporation (NASDAQ:INTL) ahead of Taiwan Semiconductor Mfg. Co. Ltd ADR (NYSE:TSM) which is the market leader in the $30.7 billion customized semiconductor market amid shrinking margins.
Intel Corp. (NASDAQ:INTC)is believed to have the best in class manufacturing which Lazard Capital Market’s analyst Daniel Amir, thinks is even “ahead of TSMC.”
Without specifically mentioning the deal’s status Chuck Mulloy, Intel Corporation (NASDAQ: INTL) spokesman said the company’s current clientele consisted only of small scale design firms like Achronix Semiconductor Corp., and Netronome Systems Inc.
The spokesman for Cisco System’s Inc. (NASDAQ:CSCO), Karen Tillman said the two companies have a “long-standing relationship” and Intel Corporation (NASDAQ:INTL) is one of the “ several strategic suppliers of silicon” for her company. She did not reveal any further specific details.
Intel Corporation (NASDAQ:INTL) were down by 0.11% to close at $17.99, Cisco System’s Inc. (NASDAQ:CSCO) were up by 0.31% to $21.01