Apple reportedly looking to move mobile chip business to Intel

By , Nov 30, 2012

As crazy as things have been getting between Apple and Samsung in their ongoing patent war, you knew it was only a matter of time before the fight spilled outside of the court room. We continue to hear rumors and reports that Apple is looking to move away from the Korean company as a component manufacturer — it’s already doing this with displays, and could soon start doing it with processors…

We heard back in September that Apple was looking to take its iPhone and iPad chip business elsewhere, and have since heard subsequent reports. A lot of people seem to think that Apple is going to take up with Taiwan Semiconductor Manufacturing Company. But today, RBC Capital’s Doug Freedman says that it’s actually looking to go with Intel, and discussions between the two have already begun.

Forbes reports:

“Acknowledging that there’s been speculation about this in the past, Freedman moves the ball forward by spelling out the terms of a possible deal:

Intel would agree to use Apple’s preferred architecture for the iPhone — the one from Intel’s British rival, ARM Holdings. And in return, Apple would agree to switch to Intel’s x86 architecture for the iPad.”

That’s right, your future iPad could could have an Intel inside. Freedman says that Apple is looking to go with the Santa-Clara based company because of its ability to manufacture chips at scale. “We believe,” he says, that “Intel has the upper-hand due to the limitations of capacity at alternative sources” — chiefly TSMC and GlobalFoundries. He estimates Apple’s foundry business could be worth $2B next year.

Of course, Apple could still go with TSMC, or GlobalFoundries. Or it could decide to go with multiple manufacturers to diversify its supplier base. Whoever it chooses, though, the real loser is Samsung. The company currently manufacturers chips for Apple’s iPhone, iPad, iPod touch and Apple TV. And many believe that its loss of that business would be absolutely devastating for its supplier arm.

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  • http://twitter.com/MCaudebec Maxim∑

    Makes sense, Intels infrastructure is big enough to withstand apples high demand. I don’t think TSMC can make chips fast enough for apple yet so intel seems to be the only realistic alternative

    • Lordthree

      If they switch to intel for iPads that will be a huge sea change. Not likely, but now with forstall out… Who know? We’ll see.

  • http://twitter.com/bsmith8008 Brandon Smith

    It possibly could be devastating towards Samsung but in reality it gives Samsung a better opportunity for there own products and keeps apple more home bound I like that there keeping business within the usa

    • http://www.facebook.com/joe.jonsen Joe Jonsen

      samsung sucks

      • http://www.facebook.com/austen.kopp Austen Kopp

        So do you.

      • http://www.facebook.com/xxLIUZHENYUxx Liu Zhenyu

        umadbro?

      • http://www.facebook.com/tafk1 Taf Khan

        Samdung, more like they stink…

    • http://www.facebook.com/tafk1 Taf Khan

      It might stop Samsung looking at apples designs in an attempt to copy again..

  • http://www.facebook.com/joe.jonsen Joe Jonsen

    apple designed but Intel manufactured does not = intel inside.. thank god

  • Jonathan Jaimes

    It’s so funny how many where blowing up surface pro because it has intel, and that it suck. Now what you guys have to say about this apple having intel. It’s going to suck too.

    • http://www.facebook.com/xxLIUZHENYUxx Liu Zhenyu

      It was not because of the intel chip, it was because of the ridiculous blown price that wanted to compete with the iPad 4. I hope you are not trying to be an ass around here.

      • Jonathan Jaimes

        Am not trying to be an ass but it’s funny how many people talk crap about other products, but at the end its going to be the consumer choice what are they going to get.

    • Tom Canuck

      My problem with Surface PRO is the price…. Not that it uses Intel heh

  • Irfan Tarique

    YES!

  • http://www.facebook.com/xxLIUZHENYUxx Liu Zhenyu

    If you read the URL of this post you will realize it says ‘more-talk-of-byebye-Samsung’.

    • Falk M.

      Thanks man… Love it! :D

    • http://www.facebook.com/tafk1 Taf Khan

      Yes soon it will be “Samsunk”.

  • http://twitter.com/akhyarisme akhyar.salleh

    does that means there’s a possibility that we might have an option for full-fledged OS X in far future iPads if Apple’s going to implement Intel’s own architecture?

  • doehunter

    I thought Samsung had or was in the process of opening a MFG plant in Texas to make the A5 chip.