$1B is not even close to enough payment for a dedicated TSM 28 nm or 20 nm fab for Apple or QCOM.
Do you think INTC would really be interested in running 40 nm, 28 nm, or 20 nm ARM chips in INTC fabs at TSM or Samsung type chip prices? I don't think so. If AAPL wants to redesign with an INTC chip architecture and redo a lot of software, INTC will be happy to run the chips, but INTC advanced processes are Expensive. AAPL won't get low prices from INTC for Intel chips.