CHIPMAKER Intel is trying to grab part of Apple's foundry business, according to analyst outfit Piper Jaffray.
Apple currently gets its A4 and A5 chips made by Samsung, though it has recently inked a deal with Taiwan Semiconductor Company Limited (TSMC) to make some of the A5 chips found in the Ipad 2. Now it seems that Intel wants to get in on the action by offering up its considerable manufacturing capabilities to Apple.
Intel is trying hard to get into the mobile chip foundry business and is currently the second largest mobile chipmaker behind Samsung. Gus Richard, a Piper Jaffray analyst said the deal would make sense for both Apple and Intel, "The combination of Apple's growing demand and market share in smart phones and tablets gives Intel a position in these markets and drives the logic volume Intel needs to stay ahead in manufacturing."
Richard also commented that TSMC will start to receive revenue from its deal with Apple by the fourth quarter of 2011.
Apple's deal with TSMC clearly shows that it is trying to diversify its silicon suppliers away from Samsung. Its recent legal battle with Samsung should only intensify its efforts to find alternate fabs to make its processors.
Even though Apple is making moves to shift its dependency away from Samsung, Richard says that it will take a few years for Apple to change foundry suppliers.
So even if Intel is able to add Apple as a foundry customer, it might be a while before it begins to benefit from that.
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