Analyst: Intel in Talks to Build ARM Chips for Apple

By Wolfgang Gruener
published

RBC Capital analyst Doug Freedman stated that Intel may soon be building ARM processors for Apple.

Intel is reportedly in talks with Apple to take over Samsung's role to manufacture iPad and iPhone processors. Even if Apple is not using Intel's x86 CPUs in its mobile products, it would be an attractive deal for Intel to fill the capacity in its own fabs and take away business from its most significant chip manufacturing rival in the market.

Such a relationship could build on the existing product relationship between Intel and Apple, in which Intel has earned Apple's trust as a reliable processor supplier. While it would be a big step for Intel to support the production of ARM processors, Intel has recently expanded its options as a foundry by agreeing to build chips for Netronome, Tabula and Achronix. The addition of Apple's processors would add more than 100 million processor units per year to Intel's output.

According to Freedman, Apple's demand could reach 415,000 12-inch wafers, each generating revenue of about $5,000. It's unlikely that Intel would turn down a $2 billion per year business opportunity.

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Wolfgang Gruener
37 Comments Comment from the forums
  • tanjali
    Intel, Can you beat Samsung prices?
    Reply
  • fuzzion
    Assume 4k per wafer, thats 415k x 4k = 1,660,000,000 chips. Thats a lot of chips
    Reply
  • mforce2
    I maybe AMD should go ask nicely and Intel will produce chips for them too :)) Even better judging by how AMD has built Bulldozer they should probably have Intel design the chips for them too
    Oh well... Btw I like AMD and have an Phenom II X6 which is not that bad
    Reply
  • Marco925
    I want to see removable and user replaceable ARM CPUs

    tanjaliIntel, Can you beat Samsung prices?
    Intel would either give up on this market because they know they can't charge $10000 for the intel iArm due to competition, or will attempt to be anticompetitive to push whoever they can out and then buy ARM.
    Reply
  • shafe88
    tanjaliIntel, Can you beat Samsung prices?Samsung, Can your beat Intel fab process. If Intel uses the same 22nm precess they use for their own processors this could mean 1 of two things, more chips per wafer for greater profit or more cores per chip for greater performance.
    Reply
  • friskiest
    fuzzionAssume 4k per wafer, thats 415k x 4k = 1,660,000,000 chips. Thats a lot of chips
    But not all of them would make it past to QC,. the yield rate of high density chips is actually low,. somewhat related, I could still remember the 2% yield rate of the first FERMI batch.
    Reply
  • shafe88
    mforce2I maybe AMD should go ask nicely and Intel will produce chips for them too ) Even better judging by how AMD has built Bulldozer they should probably have Intel design the chips for them too Oh well... Btw I like AMD and have an Phenom II X6 which is not that badNow why would AMD want Intel to produce or design their chips. If Intel did produce or design AMD's chips they would either charge AMD a lot for production or purposely design the AMD chips to be slower. It would be kinda funny buying and AMD apu with Intel graphics.
    Reply
  • CaedenV
    Intel would MANUFACTURER the ARM chips, building them would imply design work and intel got themselves out of the ARM design market quite a while ago.
    Reply
  • bllue
    More expensive iCrap inc
    Reply
  • Intel reverse engineering Apple custom ARM designs! Don't do it Apple, build your own chip fabs! Intel will steal your IP!
    Reply