Intel Interested in Manufacturing Apple's A4 and A5 Chips

Intel's A5 processor?

According to a report by EE Times, Piper Jaffray analyst Gus Richard says that “Based on a number of inputs, we believe Intel is also vying for Apple's foundry business. It makes strategic sense for both companies. 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. Intel's manufacturing lead gives Apple an additional competitive advantage in these markets and distances it from Asian competitors that are knocking off its products.

This could be seen as a move to one up Samsung, which is in a legal battle with Apple over the former's products bearing similarities to the iPhone. Jumping ship to Intel would mean that Apple no longer has to rely on Samsung for the processors.

It seems that that Intel and Apple were destined to work together. The iPad was first set to use Intel ‘Atom’ processor, but later ditched that in favour of Apple’s own ARM processors after it was found that Intel’s processors were found to be too power hungry.

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