If everything goes as planned, Intel will be the sole provider of iPhone modems, said the report.
For prototyping and testing the 5G iPhone, Intel is reportedly working on a precursor to the 8161 called the 8060.
To increase transistor density for more speed and efficiency, Intel is likely to fabricate the 8161 using its 10-nanometre process.
The performance of 8060 appears to have triggered a little tension between Apple and Intel due to "heat dissipation issues" that would both raise the temperature and hurt battery life.
However, Apple's current issues with Intel are not serious enough to cause Apple to turn to Qualcomm for the supply of 5G modems, said the Fast Company report, based on its source. Apple declined to comment on the report.
The first 5G smartphone is expected next year.
Android phones from such manufacturers as Xiaomi, Oppo and Huawei will contain 5G modem chips made by Qualcomm which has claimed that its modems have managed the heat dissipation issues, the report said.