Intel and Cisco reportedly reach fab deal

Intel has reached a deal with Cisco that will see it providing chips for the networking equipment giant, according to a new report.

Neither company has officially announced the agreement, but an article in the Korea Times cited an Intel executive who reportedly confirmed the partnership.

"’Intel has recently signed an agreement to manufacture Cisco's networking chips on a contractual basis,’ said Lee Hee-sung, country manager at Intel Korea,” the report reads.

"’The deal with Cisco looks significant. If Intel successfully produces chips with designs offered by Cisco, then it will get additional momentum to effectively grow its foundry business,’" the report added, quoting a Samsung source.

With much of Intel’s business in jeopardy thanks to a floundering PC market, the chip giant is expected to expand its foundry services - manufacturing chips for other companies on a contract basis - to compensate.