Posted January 19, 2013 by Lisa Johnson in Technology

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

Lisa Johnson

Lisa Johnson is an award-winning journalist, host, author and critic, who has appeared as an expert on the CBS Early Show, NBC s Today Show, Dr. Phil, CNN, CNBC, Fox News, CNBC, Bravo and many more. Her work has been featured in The Wall St. Journal, the New York Times, Forbes, Oprah.com, AOL and numerous other media outlets. She has authored three books from major publishers