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Could Intel Make iPad 3 Chips?

Samsung Electronics has been manufacturing A4 and A5 processors for Apple up till now, but a rival has been spotted on the horizon. Apple and Taiwan Semiconductor Manufacturing Co. Ltd have made a deal for A5 and A5’s successor processors and Intel is looking to get in on the act.

Intel Corp. is also interested in Apple’s foundry business and they already supply x86-processors for the PCs manufactured by Apple. Piper Jaffray and Co. analyst Gus Richard is one who puts forward this hypothesis, "Based on a number of inputs, we believe Intel is also vying for Apple's foundry business”.

Richard also adds that an Apple-Intel strategy is a great move for both companies – Apple’s market share in the tablet and smartphone segment allows Intel to have the logic volume necessary for keeping their manufacturing leadership. Thus Intel could help Apple gain an extra-advantage and overcome the Asian competition. An Apple-Intel strategy would also impair Samsung which is a strong competitor to both enterprises.

While Samsung is still Apple’s main foundry supplier, it appears Apple is wanting to do away with Samsung’s services. An indication of this is the recent legal dispute between Apple and Samsung. However, a full shift away could only take place over a few years.