Intel's Foundry Business: A Strategic Move with Fortinet
Intel's decision to partner with Fortinet on its sixth-generation Security Processor (SP6) marks a significant shift in the company's Foundry business strategy. This partnership highlights Intel's evolving role from an integrated device manufacturer to a full-fledged foundry, catering to a diverse range of customers, including the US government.
A Secure and Customized Approach
Fortinet's SP6 is a testament to the company's commitment to custom ASICs, a strategy that sets them apart from competitors. By using Intel Foundry, Fortinet gains access to a secure and reliable manufacturing process, ensuring the production of specialized chips for security and cryptographic operations. This level of customization and supply chain security is crucial for Fortinet's smaller appliances, like SD-WAN gateways.
A Step Back from Leading-Edge Tech
Interestingly, the SP6 will utilize Intel's older 4 process node, a strategic choice. While it may not offer the absolute latest in chipmaking technology, it provides a balance between performance and cost-effectiveness. This decision aligns with Intel's broader Foundry business strategy, which aims to cater to a wide range of customers with varying needs.
Supply Chain Security and Government Support
The partnership with Fortinet also underscores Intel's focus on supply chain security. With US-based production, Fortinet can ensure a level of security that is challenging to achieve with leading-edge processes from manufacturers like Samsung and TSMC. This is particularly significant given Intel's recent $3 billion award from the US government to establish a secure enclave for manufacturing chips for government agencies.
A Win for Intel's Foundry Business
The Fortinet deal is a strategic win for Intel's Foundry business, demonstrating their ability to attract customers with diverse needs. By leveraging Fortinet's expertise in disaggregated semiconductor design and advanced packaging, Intel can offer a scalable and secure solution. This partnership also highlights Intel's commitment to reinventing itself as a competitive foundry in the semiconductor industry.
Looking Ahead
As Intel continues to expand its Foundry business, we can expect to see more strategic partnerships and innovative solutions. The company's focus on supply chain security and customized ASICs positions it well to cater to a wide range of customers, from cybersecurity hardware players to government agencies. This evolution in Intel's business model is a fascinating development in the semiconductor industry, offering a new perspective on the future of chip manufacturing.
