OAKLAND, Calif. July 25 (Reuters) — U.S. chipmaker Intel Corp (INTC.O) said on Monday it will produce chips for Taiwan’s MediaTek Inc (2454.TW), one of the world’s largest chip design firms.

The manufacturing arrangement is one of the most significant deals Intel has announced since it launched its so-called foundry business early last year.

A foundry business builds chips that other companies design and Taiwan Semiconductor Manufacturing Co (TSMC) (2330.TW) is the top player in that space. Intel has mainly built chips it designed itself.