Intel agrees to make chips for a startup firm

CALIFORNIA, USA: U.S. computer chipmaker Intel Corp has agreed to make chips for startup firm Achronix Semiconductor Corp, an Intel spokesman told Reuters.

The deal with Achronix, which was initially reported by the Wall Street Journal, would be the first time Intel has given another company access to its most advanced production processes.

"Yes, we have an agreement with Achronix to manufacture their future field-programmable gate array (FPGA) products on our 22 nanometer process," Intel spokesman Bill Kircos told Reuters. Achronix makes FPGA chips that are electrically programmed for specific tasks, which could be used for computing, industrial or aerospace applications.

Kircos said the agreement makes up significantly less than 1 percent of Intel's total capacity and is not financially material to the company's business.

"But it is still an important endeavor for us that we are committed to deliver on," Kircos said.

Kircos told the Journal that Intel is open to the idea of making chips for other companies besides Achronix.