The Korean Times is reporting that Intel and Cisco strike a chip deal and has formed a new partnership, aiming to offset falling demand for traditional CPU chips. Interestingly the agreement comes in picture after Intel saw decline in profits from its CPU-based businesses although the partnership is part “of Intel’s diversification,” reads the newspaper.
“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. “The deal with Cisco looks significant. If Intel successfully produces chips with designs offered by Cisco, then it will get additional momentum to effectively grow its foundry business.”