It looks like Intel wants to have a presence with mobile chips, as it announced a “multigeneration agreement” with ARM to build new low-power compute chips based on the Intel 18A process. For this agreement, Intel will optimize its 18A process to use ARM’s designs and IP.

The partnership will focus more on Intel being able to make chips for ARM licensees like Qualcomm and MediaTek—and this means that Intel wants to compete against TSMC and Samsung when it comes to chip manufacturing. Intel’s partnership with ARM should help have equal footing against TSMC and Samsung amidst the growing demand for mobile chips.

“Intel’s collaboration with ARM will expand the market opportunity for IFS and open up new options and approaches for any fabless company that wants to access best-in-class CPU IP and the power of an open system foundry with leading-edge process technology,” Intel CEO Pat Gelsinger said.

Aside from mobile chips, Intel aims to expand its partnership with ARM to manufacture ships for automotive, IoT, data center, aerospace, and government applications.

The announcement is part of the IDM 2.0 strategy, where Intel is investing heavily in expanding its manufacturing capacity, expanding facilities in the US and Europe. This move should help balance the supply chain for chips, addressing bottlenecks caused by demand.