The two companies had bid over $1bn each to secure access to TSMC products.
Apple and Qualcomm have failed in their separate attempts to invest in Taiwan Semiconductor Manufacturing (TSMC) which would have ensured them secure chips for their smartphones.
The two companies had offered to invest over $1bn each for exclusive deals to secure exclusive access to the custom chip maker’s products, according to Bloomberg report.
TSMC had earlier said it wants to retain control of its plants and doesn’t want to sell stake in its company or need cash for investments.
Apple and Qualcomm are both tying to satisfy increasing global demand for mobile devices and securing additional manufacturing resources to meet supplies.
Apple is reportedly seeking an alternative to its main chip supplier, Samsung Electronics, which it just won a $1bn mobile patent infringement verdict against in federal court in San Jose.
Earlier in 2012, Qualcomm said it only had manufacturing capacity for about half of the advanced chips for the latest 4G wireless devices.
Apple’s current iPhone and iPad models both use Qualcomm baseband chips for cellular network access, and the company planning to launch new iPhone and iPad models in the next couple months.
TSMC supplies chips to technology companies like Qualcomm, Broadcom, Nvidia.