UPDATE 1-Intel agrees to make chips for a startup firm

* Has agreement with Achronix on FPGA products – spokesman

* Says deal makes up less than 1 pct of Intel capacity

(Recasts; adds Intel spokesman comments)

Nov 1 (BestGrowthStock) – U.S. computer chipmaker Intel Corp
(INTC.O: ) 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

“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.
(Reporting by Sakthi Prasad in Bangalore; Editing by
Muralikumar Anantharaman and Hans Peters)

UPDATE 1-Intel agrees to make chips for a startup firm