Intel Corp (INTC)

[VeeCee]

Refer to the comments-last man standing
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INTC Can Make Money Serving Apple, Others’ Chips, Says Credit Suisse
By Tiernan Ray

Credit Suisse‘s chip analyst John Pitzer this morning weighs in on the debate over whether Intel (INTC) could obtain more business manufacturing other company’s chips, including, perhaps, Apple‘s (AAPL) custom chips for its iPhone, iPad and iPod Touch.

Although Intel has only three small customers for its contract “foundry” service – Achronix, Tabula, and Netronome – nevertheless Pitzer sees great potential for Intel based on its technology lead in chip process technology, taking a much brighter view than many of his peers on the Street:

Moore’s Law – smaller, faster and cheaper – has been the cornerstone of Tech economics for 40 years. It is our view that technical, financial and scale issues are driving towards a “last-man-standing” advantage for INTC relative to Moore’s Law and that INTC will leverage that advantage not only in its core business but increasingly as a specialized foundry […] as INTC’s manufacturing lead continues to widen at 14nm and especially at 450mm, IFS will become a more meaningful driver of top and bottom line performance.

In particular, if Intel can grab Apple’s business from Samsung Electronics (005930KS), the economics could work out much more favorably for Intel than people suspect: