As Intel enters the world of chip contracting, a report says that the company could grab as much as 10% of Apple’s next-generation mobile chip orders.
“Institutional investors” cited by DigiTimes on Tuesday believe Intel could be making a play to get a slice of Apple’s business for its so-called “A7” chip, expected to power the company’s next-generation iPhone. Apple has reportedly been looking to move its chip production contracts away from rival Samsung, which currently handles all of the company’s current A-series chips.
Taiwan Semiconductor Manufacturing Company (TSMC) is expected to be the company to take the lion’s share of Apple’s chip fabricating business from Samsung. Rumors have floated for years that TSMC would be building chips for Apple, but no rumors have come to fruition as of yet.
The DigiTimes report claims that Samsung and TSMC are both competing for contracts to build “A7” chips for Apple. TSMC is expected to begin production of A-series chips in 2014.
Industry expectations are that Samsung will get half of the “A7” orders, with TSMC receiving 40 percent, and Intel picking up the remainder.
“In the past, Apple’s processor orders were unattractive because of low profit margins and Samsung was the only cooperating firm,” the report said. “In addition, at the time Samsung’s smartphones were no threat to Apple’s iPhone. But Samsung has since become the biggest smartphone vendor in the world.”
A report last week suggested that Apple and Intel were in talks for Intel to build chips for the Cupertino company’s iOS devices. Intel is looking to delve deeper into the chip contracting business as the PC market has struggled in recent years due to competition from smartphones and tablets.