Korea Times reports Intel signed up Cisco as one of the latest clients for its foundry business. No details of the deal were revealed, but it could likely be one of the largest orders for Intel's Custom Foundry to date.
The partnership is part of Intel’s diversification, aimed to offset falling demand for traditional central processing unit (CPU) chips.
“Intel has recently signed an agreement to manufacture Cisco’s networking chips on a contractual basis,” said Lee Hee-sung, country manager at Intel Korea, during an interview with The Korea Times.
The Intel executive added that the firm, headquartered in Santa Clara, Calif., hopes to take advantage of the growing demand for value-added programmable and logic chips, a profitable segment.