Mashable: This is one of the most important deals that Intel has announced since it started its so-called foundry business at the beginning of last year.

Intel Corp announced on Monday that it will develop semiconductors for MediaTek Inc, one of the leading chip design companies in the world.

This is one of the most important deals that Intel has announced since it started its so-called foundry business at the beginning of last year.

Taiwan Semiconductor Manufacturing Co. (TSMC) is the market leader in the foundry industry, where it manufactures chips designed by other firms. Intel has mostly made chips that it itself designed.

"That's a pretty big deal for us to have a customer from Taiwan and for them to bet on us to grow and try this. Randhir Thakur, president of Intel Foundry Services, told "This is a major anchor customer win." according to a report.

Dan Hutcheson, a chip economist at TechInsights, said that there were doubts in the industry about whether Intel could succeed in the foundry business. However, the deal with MediaTek shows that Intel is on the right track and that its investments, like hiring the right executives, are paying off.

When it comes to the danger for chip design companies like MediaTek, Hutcheson said, "You're putting at risk around two years of work when you go into a foundry." "If the foundry can't make it work because of something that happened, you've lost that design window in that market window."

Intel didn't say how much the deal was worth or how many chips it would make for MediaTek, but it did say that the first products would be made in the next 18 to 24 months using a more mature technology called Intel 16. The chips will be used in smart devices.

MediaTek stated in a statement that the company has always utilized a multi-sourcing approach. "This partnership will help MediaTek get more of what it needs for mature process nodes while keeping its close relationship with TSMC in advanced process nodes."

Intel has already said that Qualcomm Inc. and Amazon.com have signed deals with its foundry business.