Taiwan Semiconductor Manufacturing and US computer chip maker Intel announced have forged an alliance that will allow TMSC to use Intel's tiny Atom microprocessors.

The pair described the agreement in a joint statement as "an important step in a long-term strategic technology cooperation between Intel and TSMC.

Intel president and chief executive Paul Otellini said that the compelling benefits of our Atom processor combined with the experience and technology of TSMC is another step in Intel's long-term strategic relationship.

Intel added that the agreement with TMSC should increase the take up of the processor. TMSC said that it should help semiconductor growth.

It is unusual that Intel has let anything go as it usually controls its manufacturing process with an iron claw.