To add to reports from DigiTimes earlier in the week, WSJ chimed in with its own information backing up the earlier news. Apple has allegedly been negotiating with TSMC (Taiwan Semiconductor Manufacturing Company) to sign it up as a manufacturer of future AX chips for iPhones, iPads and iPods.
Currently, Apple’s chips are produced by Samsung. But with the ever growing tension between the two tech giants, it’s no surprise to see Cupertino wanting to ween itself off Sammy. Negotiations between Apple and TSMC allegedly started all the way back in 2010, but only recently did the two companies agree over terms.
WSJ reports on the contractual sticking points:
Apple asked to invest in TSMC, or to have TSMC set aside factory space dedicated to Apple chips, the executives say. TSMC Chairman Morris Chang rejected both requests because the company wanted to maintain its independence and manufacturing flexibility, the executives say. TSMC plans to start mass-producing the chips early next year using advanced “20-nanometer” technology, which makes the chips potentially smaller and more energy-efficient.
It’s not unusual for Apple to ask for exclusivity with manufacturing, often times, the company swallows up smaller companies to take its technology and make it Apple-only. That was clearly not going to float TSMC’s boat.