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Apple to rely on Samsung and TSMC for chips over the next two years?

Posted: , by Alan F.

Apple to rely on Samsung and TSMC for chips over the next two years?
Apple will once again be partly relying on its chief rival Samsung to produce its next-generation smartphone application chips. The chips will be used in 2015 and will be produced using the 14/16nm FinFET processes. This information comes from those inside Apple's supply chain. The same sources say that TSMC is locked up as the main supplier for Apple's next 20nm A-series chips for next year's Apple iPhone. TSMC also will be producing some of the 14/16nm FinFET chips along with Samsung.

According to the report, the sources add that Korean based Samsung will be using the 14nmFinFET process to manufacturer A-series processors for the 2015 iPhone. TSMC will use its 16nm FinFET process to produce the same chip.

The speculation is that TSMC will end up with 60% of Apple's 14/16nm chip orders with Samsung responsible for 30% to 40%. There is also a chance that both Samsung and TSMC will split Apple's 2014 chip orders right down the middle.

For years, Apple has been rumored to be looking for a replacement for Samsung, which had been charged with making the A-series processor used in the Apple iPhone and Apple iPad, along with other parts. Because of the fierce competition between the two in both the marketplace and in the courtroom, Apple was hoping it could stop relying on Samsung. But when Sharp was allegedly having problems with LCD burn-in on panels it was building for the Apple iPad mini with Retina display, and yields were too low to be acceptable, Apple supposedly turned to Samsung for supplies of the screen. And if this report is true, (we suggest the usual grain of salt approach when it comes to stories about who will be producing chips for Apple), Apple will be calling on Samsung for at least the next two years to help it produce the device that is the top rival to its Samsung Galaxy S smartphones.

source: DigiTimes

21 Comments
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posted on 18 Dec 2013, 01:28 2

1. woodshop20 (Posts: 459; Member since: 14 Sep 2013)


I don't think Apple will find a replacement for Samsung anytime soon, unless they decide to start fabricating themselves.

posted on 18 Dec 2013, 06:50 1

13. Finalflash (Posts: 1433; Member since: 23 Jul 2013)


They can't and for a long time because no one else has that kind of volume manufacturing available. But the problem is with the difference in chips next year, which probably means the iPhone will be getting the smaller chip maybe and the iPads the bigger one. Meaning performance and maybe even differences in quality/yields. That will make for some fun variations in the fairly dull repeated news cycle hopefully.

posted on 18 Dec 2013, 01:36 14

2. skyline88 (Posts: 283; Member since: 15 Jul 2013)


sue Samsung, and yet still rely on Samsung, typical pathetic Americans......

posted on 18 Dec 2013, 01:43 3

3. Adithya7184 (Posts: 302; Member since: 05 Mar 2011)


+1 to you...well said

posted on 18 Dec 2013, 01:55 10

4. Commentator (Posts: 2293; Member since: 16 Aug 2011)


As opposed to the typical un-pathetic Americans that developed the operating system to which Samsung owes the vast majority of its recent success?

posted on 18 Dec 2013, 05:58

12. darkkjedii (Posts: 10095; Member since: 05 Feb 2011)


+1 to you...well said.

posted on 18 Dec 2013, 02:28 5

7. Arman (Posts: 42; Member since: 08 Jul 2013)


"typical pathetic Americans"
Im iranian.. and I think your words are absolute BS..

being someones supplier doesn't mean you can't be a direct competitor.. !! seriously what's the matter with you? you think huge corporations are like friends when they supply components or technologies for each other ? no.. every transaction has a legal agreement and there is no other relationship out of that..

you think samsung did a favor for apple as being a supplier? no, samsung made a huge amount of cash because of apple. hell, even google make more money out of iOS than android!

apple wants to manage its supply chain , and samsung dominance can make this supply management harder for apple(relying on one huge supplier can make apple weak for negotiating about price,delivery time or even technology). its a strategic move, thats all.

posted on 18 Dec 2013, 02:33 2

8. JakeLee (limited) (Posts: 651; Member since: 02 Nov 2013)


It's the Sammy Mobil division Apple sued.

And it's the Sammy LSI Apple cooperates with.

posted on 18 Dec 2013, 08:07

14. E.S.1 (Posts: 289; Member since: 14 Sep 2013)


It's apple strategy lol

posted on 18 Dec 2013, 14:27

15. Henry3Dogg (Posts: 4; Member since: 18 Dec 2013)


So in your world a customer has to allow any supplier to steal from them?

Like that is going to work.

posted on 18 Dec 2013, 02:18 6

5. JakeLee (limited) (Posts: 651; Member since: 02 Nov 2013)


Wow, there are people thinking Sammy runs its fab for Apple for free.

A factory HAS TO run at its full capacity for maximum profits. Every second standing idle is counted as losses.
I doubt Sammy will be able to fill the huge gap Apple leaves behind with its own Exynos chips.

posted on 18 Dec 2013, 02:53 3

9. Arman (Posts: 42; Member since: 08 Jul 2013)


exactly.. some people really don't get it.. business relationship is a win-win situation for both parties in a restricted contract between them. nothing outside of this agreement can influence their responsibilities if it's not mentioned in the contract.

if a CEO gets angry!! about one supplier ,he can't just terminate a contract, or else his company must pay the cost..

samsung made a huge profit in recent years only because of Apple. Display,RAM,SSD,chip fabrication and many other samsung factories grow over years only because of apple products.. so believe it or not , samsung need apple as much as apple needs samy..

right now samsung is really afraid of losing apple as a customer more than apple worrying about losing samsung as a supplier. because apple is one of the few customers that pay cash in advance for a huge batch of components and make a long term contract with suppliers. other costumers have a more "ON DEMAND" approach. so every supplier is eager to capture apple and make a long term relationship with it .. TSMC,SHARP,LG and other companies will have a bright future if samsung get ditched by apple in next 2 or 3 years.

posted on 18 Dec 2013, 02:20 1

6. itsdeepak4u2000 (Posts: 2323; Member since: 03 Nov 2012)


Apple has no option right now.

posted on 18 Dec 2013, 03:43

10. taikucing (unregistered)


intel is too pricy but still imperfect

posted on 18 Dec 2013, 03:58

11. Loubielou (Posts: 194; Member since: 11 Jul 2012)


Why?do Apple take a company that really helps them with there Smartphones,keep taking them to court for Money,Samsung should stop straight away supplying things to Apple an make them struggle to complete there products.Whats? going to happen when we get the Samsung Galaxy S5 on the Market,Apple will be going to Court again to stop it being sold in USA an other countries,some law needs to be brought in to stop these Court cases,as they are just acting Babies

posted on 18 Dec 2013, 14:34 1

17. Henry3Dogg (Posts: 4; Member since: 18 Dec 2013)


Why?do Samsung take a company that is their biggest customer and provides them with large profits and steal their technology and try to sue them, abusing standards essential patents for which they are refusing FRAND licensing so that the European trade regulators are forced to step on and smack Samsung.

Why is Samsung so greedy that it wants to treat it's biggest customer this way.

Samsung is losing court cases to Apple all over the world. Even on South Korea. But Samsung continues to behave like a spoiled child who thinks that rules only apply to other people. Why is Samsung such a spoiled brat?

posted on 18 Dec 2013, 14:32 1

16. applesucker (Posts: 81; Member since: 29 Oct 2013)


apple A7 made by samsung period end of story

posted on 18 Dec 2013, 14:35 1

18. Henry3Dogg (Posts: 4; Member since: 18 Dec 2013)


Apple A7 designed by Apple and IP owned by Apple and ARM

posted on 23 Dec 2013, 18:02

20. MySchizoBuddy (Posts: 44; Member since: 23 Aug 2011)


he doesn't understand the difference between designing and manufacturing.

posted on 23 Dec 2013, 18:01

19. MySchizoBuddy (Posts: 44; Member since: 23 Aug 2011)


iPhone is made by Foxconn period end of story.

posted on 24 Dec 2013, 07:02

21. Henry3Dogg (Posts: 4; Member since: 18 Dec 2013)


Correction

The above comment was not made by MySchizoBuddy

Apparently it was made by Apache

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