Apple might hire Intel to make A7 chipsets

Foundry service providers Taiwan Semiconductor Manufacturing Company (TSMC) and Samsung Electronics are reportedly competing for Apple's A7 processor orders. Rumors regarding the possibility of Intel obtaining the orders have also spread. According to institutional investors, Intel may obtain 10% of Apple's A7 processor orders.

The patent lawsuits between Samsung and Apple have been heating up, causing the latter to reduce its reliance on the former. Apple has been shifting orders of DRAM, mobile RAM chips and panels away from Samsung. Samsung used to be the sole OEM firm for Apple's processors, but the latter has now begun to issue orders to other firms.

TSMC has been said to become the second largest supplier for Apple's A7 processors and production is reportedly to begin in 2014. But recent rumors have spread that Intel may also receive Apple's orders.

According to institutional investors, Samsung is likely to receive 50% of the A7 processor orders, TSMC 40%, and Intel 10%.

In the past, Apple's processor orders were unattractive because of low profit margins and Samsung was the only cooperating firm. In addition, at the time Samsung's smartphones were no threat to Apple's iPhone. But Samsung has since become the biggest smartphone vendor in the world.