Intel looking to manufacture chips for others

Worldwide PC sales are on a decline and conversely smartphones and iPads are on the rise.  This may be why world’s largest chip maker, Intel who only produced its own chips now looking for new customers.  The Taiwan Semiconductor Manufacturing Company (TSMC) has been the world’s largest contract chip maker that produced semiconductors for others.  According to Bloomberg Businessweek, San Jose, California based Altera which sells phone equipment processors and used TSMC to produce them recently hired Intel to produce its advanced chips.  Chip making is a $39.3 billion a year industry.

The Santa Clara, California based Intel has excess capacity in their factories due to slowdown of PC sales.  According to published reports, Intel agreed to produce chips for tech behemoth like Cisco Systems and smaller designers such as Tabula and Achronix Semiconductors.  Intel is not stopping there.  It is in discussion to produce chips for Apple.  Apple spent over $3.9 billion last year for custom chips built by its arch rival Samsung Electronics.  Apple is looking to diversify its chip supply and looking to TSMC and Intel to produce advance chips.  This may be a blow to world’s No. 3 chip maker Samsung but a gain for TSMC and Intel.