Intel providing chip technology to startup led by co-investor of Tan in rare deal

Intel shares jumped 12% in afternoon trading on Thursday as the PHLX Semiconductor index rose 7.4%.

Intel is providing Rosaic access to its Atom technology, the building blocks of central processors, which run on the company's x86 architecture, the source said.

Intel aims to ship register-transfer level (RTL) code for the Atom processor tech to the startup, which designers use to describe chip functions, the source said.

Doing so grants a customer comprehensive exposure to Intel's intellectual property and would allow the customer to build their own custom design, according to a veteran chip executive.

Rosaic added a description of the company's equity structure, including the number of preferred and common shares, according to the amended Delaware filing dated July 24.