Is Apple Considering These New Partners?

Apple (NASDAQ:AAPL) is definitely looking for a new semiconductor partner to replace Samsung (SSNLF.PK), and Intel (NASDAQ:INTC) may be one of the options the iPhone maker is considering, JPMorgan analyst Christopher Danely said in a research note.

“Given their deteriorating relationship, there has been much discussion surrounding the future of the Apple and Samsung foundry partnership,” Danely wrote, according to Barron’s. “Apple currently outsources 100 percent of its applications processor manufacturing to Samsung. We believe Apple will use Taiwan Semiconductor Manufacturing (NYSE:TSM) in the near term, rather than Intel. However, we believe Intel has a decent chance to land some of the business over the next few years.”

According to the analyst, winning even 50 percent of Apple’s foundry business would land Intel an additional $3.6 billion in incremental sales and 8 cents in earnings per share in 2017. However, such a partnership would likely not involve Intel’s Atom processor division, as Apple preferred its own custom approach with its own A series of mobile processors.

“Apple prefers to develop its own applications processor technology as it has done with prior generation iPhones and iPads,” he wrote. “In 2008 Apple acquired PA Semi to help the company develop a [system on chip]. Later, in 2011, Apple acquired fabless semiconductor company, Intrinsity, to gain access to a set of tools that enable higher clock speeds. Most recently, Apple announced the acquisition of AuthenTec, a manufacturer of fingerprint sensors, in July 2012”…