Intel craves Apple's foundry work

Chipzilla wants into the foundry business and is apparently leaning on Apple to give it a head start, according to Nasdaq .

The rumours are not new, but they appear to be gaining traction. Apple is looking for alternatives to Samsung, which it is currently suing for stealing its business ideas after the outfit dared to put out a tablet. This is resulting in a divorce between the pair, which has to be the biggest case of Apple cutting off its nose to spite its face in the company’s history.

However Intel still has some competition. To win, it would also have to see off TSMC which is also one of Apple’s chums. Jobs’ Mob has stuck its neck out for TSMC and defended the outfit even as the body count at its Chinese plants rose and labour reports indicated that working there was hell on toast.

If Intel wins Jobs’ heart, Apple’s demand would help provide the scale for it to build out this business. This is not going to be a short term project. It is going to take a while for the divorce between Apple and Samsung to be finalised with sticking points including the record collection, the children and the egos.

Nasdaq points out that Intel is aware that there is an overcapacity in the foundry business which will make it difficult for Chipzilla to make a fast buck.This begs the question, why is Intel  bothering?

Either Intel hopes wants its fab operations to get bigger, and make enough orders to make its business worthwhile, or it is just sticking he boot into large suppliers like Samsung and TSMC by carrying off their business.  Intel has always dabbled in the foundry business.