Rumor about Apple switching to ARM chips has numerous implications

May 26, 2014 16:19 GMT  ·  By

A rumor out of France this week is making a few waves in the tech industry suggesting Apple might ditch Intel processors in the same way it went and adopted PowerPC a decade ago. This time however, the implications are very different and could prove to be highly lucrative for the company.

Apple is said to be considering a switch from Intel processors to ARM chips, much like those found inside the iPhone and the iPad. In fact, the California behemoth is said to be seeking a way to power Macs with chips that are exactly the same as the A-series SoCs (system on a chip).

The reason? Endless benefits in the power department, not to mention a plurality of processing cores.

But another hidden benefit that one of our readers highlighted earlier today was price. Apple pays Intel a great deal of money to use its advanced processors.

Although it usually cuts deals before the newest chips are even introduced, and although it actually gets a considerable discount on those deals because it’s buying them in the millions, Apple can still save a lot of cash by building its own.

Unlike seven years ago, when the iPhone and the iPad weren’t even in existence, the Cupertino giant now has the technical know-how to create a chip so power-efficient it will give Intel a run for its money.

Plus, the way these A-series chips are designed makes it possible to integrate a lot more than just the CPU and save space, power consumption, and costs, all at the same time while delivering a more efficient and more compelling product. In all fairness, the MacBook Air could end up costing $499 (€365), or the same as an iPad Air.

Apple would of course be the designer of the chips, but who would be the manufacturer? Its relationship with Samsung is getting worse because of the lawsuit, leaving few companies out there capable of handling a potentially large order of A-series SoCs destined for Macs.

Taiwan Semiconductor Manufacturing Company is one of them, and Apple has been in talks with the foundry several times to switch production from Samsung over to them, but such talks have failed to end in any serious partnership. At best (and this isn’t even confirmed), TSMC handles a small percentage of the A-Series orders in a backup / plan B sort of deal.

However, if Apple is indeed planning to give its Macs the ARM treatment, you can be sure Samsung doesn’t have the capacity to build these chips both for iDevices (iPhone, iPad, iPod touch, Apple TV) and the entire Macintosh lineup. Either Apple will buy someone, or it’s TSMC.