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Intel could begin producing chips for Apple

Discussions are ongoing between the two companies as Apple looks to get free from Samsung

Intel has long held onto the practice of producing their own chips, under their own standards, before setting the market and selling them off to various manufacturers. Now, in a surprising change of direction, the chip czar could be getting into the contract-manufacturing business and Apple could be one of their customers.

According to a report by Reuters, Apple and Intel have had discussions over the past year with regards to chip manufacturing, where Apple would provide the technical specifications and Intel would take care of production. This deal looks like a no-brainer for Apple, as they'd be free of Samsung's production lines, especially with the two involved in serious litigation. On the other hand, Intel has encountered difficulties due to a decreased global demand in PCs, and a contract with Apple would give them a much needed boost.

Intel recently agreed to begin manufacturing 14nm Tri-Gate technology for their competitor Altera, and a deal with Apple would show more progress in the direction of contract manufacturing. Interestingly, this latest change of direction occurs in conjunction with the company's search for a new CEO, as a successor to Paul Otellini is expected to be announced in the upcoming months. 


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Omar Qudsi, 2013-03- 7 (Update: 2013-03- 7)