Piper: Intel should pursue Apple’s foundry business

“Piper Jaffray semiconductor analyst Gus Richard this morning writes that since ‘Intel has no market share in the next wave of computing,’ the company should consider becoming the foundry to manufacture the custom microprocessors that Apple designs into its iPhones, iPods and iPads,” Tiernan Ray reports for Barron’s.

“Apple, for its part, could move away from a relationship with Samsung, which competes with Apple on the device side, a situation that has led both companies to sue one another for patent infringement,” Ray reports. “‘We believe Apple is shifting away from Samsung,’ writes Richard… ‘Based on a number of inputs, we believe Intel is also vying for Apple’s foundry business. A partnership between the two companies would drive dominance in tablets similar to Wintel‘s dominance in PCs,. he adds, referring to the long-time partnership between Intel and Microsoft.”

Read more in the full article here.

MacDailyNews Take: iOStel?

[Thanks to MacDailyNews Reader “Dominick P.” for the heads up.]


      1. Classy. I suppose you advocate a 12/6 schedule or is it 10/7.

        The 40 hour week, 2-4 weeks of paid vacation, and reasonable retirement age and benefits are synonymous with what used to be called a “middle class.” it’s all very well to be proud of working much more than that when your career allows you to be self-motivated, ambitious, well compensated and highly flexible, as is probably the case for most MDN readers. It’s quite repulsive, OTOH, to demand the same work ethic of people in lower-paid, repetitive, physically demanding jobs, as though you aren’t even aware of the difference between their situation and yours.

  1. I’ve been saying this for a while now. Right now, Apple’s A5 is on a 45nm process. Can you imagine if it were on Intel’s 32nm process?

    And next year, on their 22nm process? The advantages would be enormous. The current CPU could be running at 1.25 GHz with less battery draw than the current version. Next year’s could be running at 2 GHz with less current draw than this year’s. And that’s not including all the advances Apple could work on because of the smaller process size.

    We can bet that Intel would be very happy to be making well over 100 million cpu’s for Apple next year, with that number expanding several times as fast as their overall CPU business, even though these are less expensive chips than the average computer chip.

    Intel wants to get back into this business anyway. This would draw other clients to them as well.

  2. I might be wrong but didn’t Apple already purchase something like 30% of Imagination Technology in Europe. And don’t they make the chips for the iPod Touches and many other devices?
    What makes this person think that Apple would go with Intel when they own part of the company they, and many others are using now. Intel is not part of the “post-PC” area.
    BTW, I’ve enjoyed the IMG.L stock move over the last two years sense Apple bought into the company. $80 to now $500.

    Thanks you Apple!!!

  3. Intel would be an awesome choice as a chip manufacturer.

    As good as the others are, Intel is kind of in a league of their own when it comes to the manufacturing side.

    Apple might do well to lock them into production of Apple processors. How many more flops will Intel have on the x86 embedded side before they take a license from ARM and start churning out their own ARM processors anyway?

    They have the talent and the skill so I wouldn’t say it will never happen.

  4. I thought Intel’s foundarys were in Singapore. Or maybe it’s just one of many like the ones in Malaysia, I believe anything stateside just does process prototype work until the process is mature then they ship it overseas.

    1. Intel has foundries in the US, in Israel, and elsewhere. A new multi-billion dollar foundry is going up in Israel where Intel does much of their R&D. (The Core CPUs were developed there.)

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