Rumor: Apple to switch from Samsung to TSMC for its iDevice chip manufacturing

Apple and Samsung’s relationship has moved from friends, through frenemies and – noted previously – swung all the way to full-blown enemies. Cupertino has already moved away from Samsung for its display panels, favoring LG, AU Optronics and Sharp for its iPads and iPhones. Now, it seems that our favorite fruit company is going to shift its chip production demands from the Korean tech company to TSMC too. That’s if DigiTimes’ sources are to be believed.

Currently, all A4, A5, A6 series chips are produced by Samsung for every device using them. That’s 200 million chips every year for the iPhone and iPad alone. Make no mistake about it, that’s a huge loss of income for Samsung. That said, TSMC isn’t going to find the quantities needed easy to produce. There are talks that Taiwan Semiconductor Manufacturing Company would need to dedicate two entire plants to keep up with Apple’s processor numbers. In turn that will likely mean that other companies needing TSMC’s chips will become a second priority.

It’s bad news for Samsung, but it’s not unexpected considering the huge falling out between the two companies.

Via: BGR, AppleInsider

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