Intel CEO: No Apple ARM Chip Deal

Intel CEO Paul Otellini shot down rumors of a chip fabrication deal with Apple on Wednesday. When asked about whether or not the two companies were working on a deal for Intel to make Apple's custom ARM processors, he replied with a straight forward "no."

Intel says no Apple chip deal in the worksIntel says no Apple chip deal in the works

Apple's strained relationship with Samsung has helped fuel rumors that a deal with Intel was in the works, but now it seems that's not the case. Apple has been distancing itself from Samsung as a chip manufacturing partner and has been turning to other companies such as Taiwan Semiconductor Manufacturing Company (TSMC).

The Apple-designed chips are used in the iPhone, iPad, and iPod touch, and Samsung has historically been the go-to company for manufacturing the parts. With the ongoing world-wide patent infringement battle between the two companies, however, Apple has been working to distance itself from Samsung.

While Intel is a processor supplier to Apple, they are also -- to a degree -- competitors, and Mr. Otellini said his company "would not enable a chip competitor," according to CNET.

That said, he did leave some wiggle room, adding "t would be great if we could form a strategic relationship with a customer so that it went beyond just a single foundry transaction," referring to Intel's chip foundry business.

Assuming Intel backtracks and decides striking a chip manufacturing deal with Apple is a good move, that won't happen until Mr. Otellini is gone, and since he's stepping down as CEO in about a month, that could happen sooner instead of later.

For now, Apple's ARM chip fabrication is in the hands of other companies and rumors of an Intel deal are dead in the water. With a new CEO running Intel, however, that could change, assuming Apple is interested in striking a deal.