The world's largest chip supplier Intel and the world's largest semiconductor foundry TSMC announced on March 2, 2009 that they would cooperate on the development of Atom SoCs. The announcement garnered much attention in the industry, as it marks the first time that Intel has licensed the manufacturing of one of its processors and the first time that TSMC has obtained manufacturing opportunities for x86 processors. This report will analyze the strategic implications of the newly announced cooperation, and will examine trends in the IC industry which are highlighted by this cooperation.
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