Intel announced a partnership with MediaTek for the production of chips according to which it will produce chips for the Taiwanese company Intel Foundry Services, a new division of Intel that provides “foundry” manufacturing services to non-in-house chipmakers.

According to the president of Intel Foundry Services, Randhir Thakur, “this is a pretty big deal for both companies: for us it’s the attraction of a Taiwanese partner, for them it’s access to our facilities. Therefore, in the end, everyone benefits from it, and first of all, our clients.”

Analysts note that earlier in the industry there were some doubts whether Intel could “launch” the business of manufacturing chips for other companies, but the deal with MediaTek shows that Intel is on the right track.

Intel is not providing any financial details of the deal at this time, but it says that the first products should appear in one and a half to two years and that they will be manufactured using the Intel 16 process.