Intel Corporation (NASDAQ:INTC) signed a manufacturing agreement with the System LSI business unit of Panasonic Corporation (ADR) (OTCMKTS: PCRFY) today.

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According to Intel Corporation (NASDAQ:INTC), its custom foundry business would manufacture the future system-on-chips (SoCs) of Pansonic Corporation (ADR) (OTCMKTS:PCRFY) using its 14nm low-power manufacturing process.

Intel’s next generation SoCs delivers improved performance

The next-generation SoCs of Panasonic Corporation (OTCMKTS:PVRFY) is intended for audio visual-based equipment markets. Its future SoCs would be capable of offering higher levels of performance, power, and viewing experiences for consumers.

In a statement, Yoshifumi Okamoto, director of Systems LSI business unit, Panasonic Corporation (OTCMKTS:PVRFY) said, “Intel’s 14nm Tri-Gate process technology is very important to develop the next- generation SoCs. We will deliver highly improved performance and power advantages with next-generation SoCs by leveraging Intel’s 14nm Tri-Gate process technology through our collaboration.”

Intel Corporation (NASDAQ:INTC) said its 14 nm low-power process technology included the second generation Tri-Gate Transistors. It is optimized for low-power applications. The chipmaker emphasized that the technology would enable Panasonic Corporation (OTCMKTS:PVRFY) to achieve high-levels of performance and functionality at lower power levels compared with planar transistors.

Significant step for Intel’s foundry business

Sunit Rikhi, vice president and general manager, Custom Foundry at Intel Corporation (NASDAQ:INTC) said, “We look forward to collaborating with the Panasonic SLSI Business Division. We will work hard to deliver the value of power-efficient performance of our 14nm LP process to Panasonic’s next-generation SoCs.

He added that the manufacturing agreement of Intel Corporation (NASDAQ:INTC) with Panasonic Corporation (OTCMKTS:PVRFY) is an important step towards building its foundry business. The Japanese electronics manufacturer is the biggest client of the foundry business of the chip maker.

Other companies including Altera Corporation (NASDAQ:ALTR), Achronix Semiconductor, Tabula, Netronome and Microsemi also entered agreements with Intel’s custom foundry business.

Brian Krzanich, CEO of Intel Corporation (NASDAQ:INTC) is trying to boost the foundry business of the company by producing chips for other companies. TSMC is growing and dominates the foundry business due to the rising cost of semiconductor manufacturing and companies are increasingly outsourcing production.

The shares of Intel Corporation (NASDAQ:INTC) and Panasonic Corporation (OTCMKTS:PVRFY) were down 0.55% to $30.98 per share and 0.73% to $12.20 a share, respectively at the time of this writing around 2:54 in the afternoon in New York.

via: Bloomberg.