Intel will build FPGAs for Altera using its 14-nm FinFET process technology. The first 14 nm products are expected to be ready in 2014.

These next-generation products, which target ultra high-performance systems for military, wireline communications, cloud networking, and compute and storage applications, ware expected to enable new levels of performance and power efficiencies.

"Altera's FPGAs using Intel 14 nm technology will enable customers to design with the most advanced, highest-performing FPGAs in the industry," said John Daane, president, CEO and chairman of Altera. "In addition, Altera gains a tremendous competitive advantage at the high end in that we are the only major FPGA company with access to this technology."

Altera's next-generation products will now include 14nm, in addition to previously announced 20nm technologies, extending the company's tailored product portfolio.

Adding Intel to its foundation of suppliers and partners furthers Altera's ability to deliver on the promise of silicon convergence; to integrate hardware and software programmability, microprocessors, digital signal processing, and ASIC capability into a single device; and deliver a more flexible and economical alternative to traditional ASICs and ASSPs.

Using multi-die chip stacks, Altera currently ships an FPGA that packs 1.2 million logic elements, lagging a similar chip from its rival Xilinx with 2 million logic elements.

Altera said it would continue to make other chips at TSMC and conduct ongoing evaluations of other processes as they develop.

Currently, Intel is making chips in its 22nm FinFET process for FPGA startups Achronix and Tablua, and network processor maker Netronome.

Intel will have its 14nm process in production later this year. Globalfoundries also plans to make a 14nm process available some time in 2014.