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03-12-2013, 04:59 PM #1
Intel to Possibly Land 10% of Apple's "A7" Chip Orders
As Intel slowly gets into the chip contracting business, the company could obtain as much as 10% of Apple’s next-generation mobile chip orders according to “institutional investors.” DigiTimes believes 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 its rival, Samsung, which currently handles all of the company’s current A-series chips.
The Cupertino California company has been expected to take the bulk of the work away from Samsung and bring them to Taiwan Semiconductor Manufacturing Company. There have been rumors that the switch to TSMC is on the brink of building chips for Apple but that has yet to happen. The recent report claimed that both TSMC and Samsung are competing for contracts to build “A7” chips for Apple. It said that production of A-series chips through TSMC is expected to begin in 2014. The institutional investors now reportedly believe that Samsung will receive about half of Apple’s “A7” orders, while TSMC will take 40% and Intel will grab the remaining 10%.
According to the report:
In the past, Apple’s processors orders were unattractive because of low profit margins and Samsung was the only cooperating firm. 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.