Betting the iPhone chips: Intel wants TSMC’s contracts by 2019

It seems that Intel has quickly become a darling with analysts seeking its involvement with Apple. This as there’s an expected date of reckoning between it and one of Infiinite Loop’s silicon goliaths.

The chipset producer, one that recently began work on designs from ARM after proving unsuccessful with its own, is said to be pursuing Taiwan Semiconductor Manufacturing Company’s job providing Apple with its A-series mobile applications processors inside its iPhones and iPads. According to experts to the Nikkei Asian Review, this challenge could happen in the next two or three years.

Prior to this year, Intel has tried leveraging its experiences in chip-building for computers and servers to work in making mobile products. Other than the odd order or two, the effort never took off. With the announcement of the ARM-based chips though, LG has agreed to put these new Intel products inside of its future phones — it had already been working with Intel on a proprietary design as well.

Apple’s interest in comprising parts for its consumer products is to drive costs down from its sources by diversifying them and negotiating pricing. For example, Intel recently also took on iPhone modem orders from Qualcomm.

“There is no rivalry between Apple and Intel so it’s really likely that Apple could shift some orders there,” one Taiwanese chip company executive said. “The move is also in line with Washington’s policy to encourage US companies to make more products at home.”

Intel Vice President Zane Ball believes that his company’s resources extends what it can offer to contractors in terms of quality assurance.

“We can do design, and we can do assembly and test. We have remarkable sources and we will bring these capabilities to our customers as well,” Zane said to developers this month.

TSMC is said to have a complete monopoly on the iPhone and iPad feed for this and next year.

“TSMC’s mission is to provide the world’s number one foundry services to customers and we will keep doing that,” a spokesperson for the company said.

Source: Nikkei Asian Review
Via: 9to5Mac

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Jules Wang
Jules Wang is News Editor for Pocketnow and one of the hosts of the Pocketnow Weekly Podcast. He came onto the team in 2014 as an intern editing and producing videos and the podcast while he was studying journalism at Emerson College. He graduated the year after and entered into his current position at Pocketnow, full-time.