Intel and TSMC have partnered to co-develop system-on-chip (SoC) solutions for handsets and MIDs.
Under the agreement, Intel will port its Atom CPU cores to TSMC's technology platform, including processes, libraries and design flows. The companies will also collaborate on the development of IP infrastructure.
It is the first time that the chip giant has outsourced the manufacturing of its own microprocessors. TSMC operates the world's largest contract chip plants.
Intel hopes the agreement will broaden the market opportunities for its Atom-based SoCs, said Intel CEO Paul Otellini.
"We believe this effort will make it easier for customers with significant design expertise to take advantage of benefits of the Intel Architecture in a manner that allows them to customize the implementation precisely to their needs," he said.
TSMC CEO Rick Tsai said he believes the partnership will help stimulate overall semiconductor growth.