Report: Intel wants 10% of Apple's A7 chips

Posted by Trent Nouveau

Industry insiders believe Intel may be able to snag some 10% of Apple's next-generation mobile processors - if Santa Clara manages to successfully position itself in the chip contracting business.

According to"institutional investors" cited by DigiTimes, Intel may be eyeing some of Apple's business for its A7 chip which is expected to power Cupertino's next-gen iPhone.

Indeed, as previously reported on TG Daily, Apple has reportedly been mulling over the possibility of shifting its chip production contracts away from Samsung to TSMC.

In the meantime, both TSMC and Samsung are reportedly competing for contracts to fab A7 chips for Apple, with industry insiders estimating production of A-series chips at TSMC is expected to kick off in 2014.

The breakdown between TSMC and Samsung? Samsung will likely receive 50% of Apple's A7 orders, while TSMC could claim up to 40%, with Intel taking 10%.

"In the past, Apple's processor orders were unattractive because of low profit margins and Samsung was the only cooperating firm," the DigiTimes report claims.

"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."

As AppleInsider's Sam Oliver notes, a separate report recently suggested that both Intel and Apple were in negotiations to potentially fab next-gen chips for Cupertino's mobile iOS lineup, including iPhones and iPads.

"Intel may be making a shift to build ARM-based systems-on-chips for companies like Apple after the PC market has struggled in recent years against smartphones and tablets.

"Intel's current CEO, Paul Otellini, plans to retire in May, and some market watchers believe a new chief executive could push the company in a different direction. In particular, contracts to build custom chips for mobile device makers could help keep the chipmaker's manufacturing facilities working at full capacity," added Oliver.