Apple looks at Intel for future iPhone chips

Anew report from Nikkei Asian Review has revealed that Apple could be ditching the Taiwan Semiconductor Manufacturing Company’s ( TSMC) A- series processors for Intel's ARM- based chips. The company might now be looking at Intel to manufacture their A- series chipsets instead of TSMC, which presently manufactures Apple's chips.

“Intel, the world's largest chipmaker by revenue, announced earlier this month that it would license technology from British mobile chip designer ARM with the aim of securing more business from smartphone companies. LG Electronics will become the first smartphone company to adopt Intel chips following the ARM deal,” said the report.

After Intel's new licensing deal allows it to manufacture and sell ARM- based chipsets, Apple could be a potential buyer for its future devices. The report from Nikkei claims that a new tie- up between Apple and Intel could be seen in two years. Apple is presently using Intel's desktop processors for its Mac products. Analysts believe Intel could supply a portion of A12 chipsets for iPhones in 2018. For now, TSMC will still remain the sole supplier of A10 and A11 chipsets for iPhones that will launch in 2016 and 2017 respectively.

“TSMC could face tough competition as soon as 2018 or 2019 as Intel is likely to gain orders from Apple by then,” Samuel Wang, a veteran semiconductor analyst at research company Gartner, told the Nikkei Asian Review. “Intel has begun to engage with Apple and it aims to grab one or two top- tier customers from TSMC.”

The move, in which Apple opts for Intel's ARM chips, will also shift the production to the US, helping create additional jobs in the country.

Another report says Apple could use Intel- based chips for their modems in select iPhone 7 models. This will help reduce the dependence of Apple on existing supplier Qualcomm.