Apple's move to Qualcomm for iPhone 5, iPad 2

Yet more wheels within wheels on Apple’s move to abandon Infineon for Qualcomm subsequent to Intel’s acquisition of Infineon, manufacturer of baseband chips for the iPhone.

Now we’re told Qualcomm will contract Taiwan Semiconductor Manufacturing Co. (TSMC) to make the 3G wireless chips that will equip Apple’s iPhone 5 and iPad 2, which will be launched in mid-2011, as reported by the China Economic News.

The chips are expected to be manufactured using TSMC’s 65-nanometre process. What is interesting about this, of course, is that it underlines the rapid development of Apple’s iPhone range, now heading to version 5.

Apple used Infineon chips in all generations of iPhone but will not do so in future, the report also states Apple to have left Broadcom for Qualcomm for iPad 2 baseband chips.

What is interesting is Apple’s move to abandon Infineon emerges in one month subsequent to Intel CEO, Paul Otellini’s statement to Fox in which he claimed:

“Steve was very happy,” Otellini told Fox Business TV. “The industry was abuzz that this business unit was on the market, and there were a number of competing companies for it. I think they are very happy that Intel won the bid.”

In other news from Apple’s supply chain, it has been revealed that Foxconn has decided to raise worker wages once again in an attempt to boost morale at its giant factory in Shenzen, China.