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Report: Apple looks to replace Samsung as chip vendor

Posted: , by Alan F.

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Report: Apple looks to replace Samsung as chip vendor
"When Apple shifted from 45 [nanometers] to 32 [nanometers] nobody knew. You may have bought an iPad with a 45-nanometer chip or a 32-nanometer chip. They switched over slowly without anybody knowing it."-Gus Richard, Piper Jaffray
Piper Jaffray analyst Gus Richard is passing along the word that Apple is looking to lessen its dependence on Samsung-produced chips. While it isn't known if this is the direct result of the many legal battles between the two, Richard says that Apple is talking to TSMC about chips using the 20nm manufacturing process. A chip industry source confirms the analyst's story, saying that the relationship between Apple and Korean based Samsung has deteriorated to the point where both sides are just looking to fulfill current contracts in force, and then breaking up. Yet another Asian source says that Apple will be turning to TSMC for its quad-core chips.

Piper Jaffray's Richard says that Apple's possible dependence on TSMC could have a negative impact on other customers of the Taiwan based chip maker. Considering that the Cupertino based firm is the largest buyer of chips in the world for a consumer products company, TSMC will have to delay or cancel the shipment of chips for some of its smaller accounts as it attends to Apple..

Phil Schiller introduces the Samsung produced A6 for the Apple iPhone 5

Phil Schiller introduces the Samsung produced A6 for the Apple iPhone 5

The analyst adds that the switch will not come overnight. Apple is expected to ramp down business from Samsung while starting to ramp up orders to TSMC. When Samsung switched from the 45nm process to 32nm, most Apple device buyers never knew. Some $399 Apple iPad 2 models received the 32nm Apple A5 chip instead of the 45nm Apple A5 providing them with better battery life. He also expects Apple to send its design to TSMC early next year to see if they can make it, with production starting late in 2013. This is confirmed by Citigroup's market research fellow, J.T. Hsu, who said that Apple began checking out TSMC’s 20nm process in August this year and risk production will start in November with production in volume expected to start in Q4 of 2013. And for the 14nm process? Richard says that he hears that for those advanced chips, Apple is talking with Intel although he stressed that there is no deal done between the two.

The current A6 chip used in the Apple iPhone 5 is a 32nm process product manufactured by Samsung. A 20nm chip would be 30% faster and use 25% less power than a 28nm process chip. Meanwhile, while a similar rumor about Apple leaving Samsung for TSMC spread in March of 2011, the current speculation seems to be corroborated by too many sources not to have some truth to it.

source: CENS, MacRumors via CNET

134 Comments
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posted on 14 Oct 2012, 01:46 18

1. jstahl (Posts: 79; Member since: 03 Sep 2012)


Can't wait. I don't want no crappy Samsung parts in my iPhone.

posted on 14 Oct 2012, 02:27 17

8. darkdroid (Posts: 44; Member since: 13 Sep 2012)


apple fans call their iphone revolutionary right knowing that their parts are made by samsung right ...how does that feel ?

posted on 14 Oct 2012, 05:57 3

30. syedzain (Posts: 174; Member since: 08 Oct 2012)


So samsung makes iphone chips faster than all other android phones .. lol thats great to know..

posted on 14 Oct 2012, 07:29 1

45. darkkjedii (Posts: 11190; Member since: 05 Feb 2011)


Lol... I know huh.

posted on 14 Oct 2012, 07:29 2

44. darkkjedii (Posts: 11190; Member since: 05 Feb 2011)


Honestly as an iPhone user... It feels like old news dude. I can care less where it's made, as long as it does what I need it to do. Nowadays everything's got something from another country in it somewhere. Hell the white house was probably made in china lol.

posted on 14 Oct 2012, 02:34 16

12. willard12 (Posts: 783; Member since: 04 Jul 2012)


Considering parts for the screen and the flash memory also comes from Samsung, you're pretty much screwed. In fact, your iPhone is pretty much a Samsung knock-off.....with lower specs.

posted on 14 Oct 2012, 07:24 4

42. ZEUS.the.thunder.god (unregistered)


lol +1. you made my day bro.

posted on 14 Oct 2012, 07:47 3

50. darkkjedii (Posts: 11190; Member since: 05 Feb 2011)


The Samsiphone galaxy s5

posted on 14 Oct 2012, 09:08 1

62. Hemlocke (unregistered)


Those parts used to be made for the iPhone, but not for the 5. Just the SoC is made by Sammy, and the only impressive thing about that is how many they are cranking out to fulfill the massive demand for the iPhone 5.

posted on 14 Oct 2012, 03:32 6

18. jroc74 (Posts: 4731; Member since: 30 Dec 2010)


I bet you didnt mind one bit when you didnt know it was Samsung.

Its a reason Apple and Samsung have been major partners for iDevices all these years.

posted on 14 Oct 2012, 07:02 1

36. marekzy (Posts: 4; Member since: 03 Aug 2012)


So, iphone is so weak :)

posted on 14 Oct 2012, 09:58 2

66. sarb009 (Posts: 286; Member since: 15 Jun 2011)


ur iA$$ is also made in china u ruminant mammal

posted on 14 Oct 2012, 11:58 1

80. TROLL (banned) (Posts: 4851; Member since: 13 Apr 2012)


That was funny. Lmao.

posted on 14 Oct 2012, 14:35 1

93. syedzain (Posts: 174; Member since: 08 Oct 2012)


How do u know that his I*** was created in China.. Did u made it lol

posted on 14 Oct 2012, 15:24

105. darkkjedii (Posts: 11190; Member since: 05 Feb 2011)


Dude I like your style. U crack me up with the questions to people's insults, cuz it's hard to have an intelligent comeback. Love it dude

posted on 14 Oct 2012, 17:08 1

112. chaoticrazor (Posts: 2347; Member since: 28 Aug 2012)


you 2 should get a room, seriously with your crap comebacks. if you find him funny well shows your level of intelligence.

posted on 14 Oct 2012, 10:41

74. loli5 (Posts: 76; Member since: 08 Oct 2012)


Cool. Return all of your apple novelties then, since you wouldn't have them without Sammy. F*cking DUUUURRR

posted on 14 Oct 2012, 14:36 1

94. syedzain (Posts: 174; Member since: 08 Oct 2012)


Indirectly Ur sammy is making iphone faster than ur Gammy S3... lol

posted on 14 Oct 2012, 14:46

97. chaoticrazor (Posts: 2347; Member since: 28 Aug 2012)


indirectly you are such a muppet. speed comes down to more then just the processor. the iphones minimal restricted OS helps

posted on 14 Oct 2012, 17:40

114. rusticguy (Posts: 2828; Member since: 11 Aug 2012)


Where to clear cache and cookie (on ipad3) one has to close browser (by doing a 5 finger smooch) and go to home screen then tap settings clear cookie and cache and then a 5 finger smooch again basck to home screen and then open browser and type again ...

and then talk of speed but not loss of productive manhours doing so many 5 finger smooch for everything :D

posted on 14 Oct 2012, 18:08

116. darkkjedii (Posts: 11190; Member since: 05 Feb 2011)


Or u could just multitask to it, and keep the browser open. I don't y you're wasting your breath blasting the iPad, dude it's already sold like a gazillion units. U shoulda been doing this on march 15th. It debuted on march 16th. So shhhhhhhhhh too much hot air.

posted on 14 Oct 2012, 15:25

106. darkkjedii (Posts: 11190; Member since: 05 Feb 2011)


Lmao wowwww dude. Please keep em coming. I'm definitely a fan.

posted on 14 Oct 2012, 22:04

126. chaoticrazor (Posts: 2347; Member since: 28 Aug 2012)


wow your like a sad little groupie seriously you applaud dumb ass comments ,your an apple troll and you have little tantrums when people dont agree with you.

maybe people should do to you what you seem to applaud that idiot for doing

posted on 14 Oct 2012, 12:37

83. THETECHTEAM (Posts: 82; Member since: 12 Dec 2011)


you wasnt complaining before you knew that samsung provided those chips!! Samsung is not crappy!! The iphone is what it is because of Samsung, the components that make the iphone that comes from samsung, the UI concept that's Samsung, the software and the design of the iphone is all apple, but everything else thats Samsung Sweetie! Get your facts and do research!

posted on 14 Oct 2012, 19:07

122. Friendlysky (Posts: 54; Member since: 04 Jul 2012)


If you knew it was so crappy, why did you buy it in the first place DumbAss? You can't even make a single chip yourself. D--- A----. You knew all ICheap(Iphone) make in China.

posted on 14 Oct 2012, 01:47 6

2. wendygarett (unregistered)


Yeah pick ti omap chips as a7 chips and make all the gaming apps ti omap exclusive to let android user realise how important the apps are in this era... That way they will never criticize the iDevice...

posted on 14 Oct 2012, 01:48 12

3. jstahl (Posts: 79; Member since: 03 Sep 2012)


huh?? engrish??

posted on 14 Oct 2012, 02:28 6

9. fargeek (Posts: 2; Member since: 14 Oct 2012)


Your idevice can't even keep up with today's standards like android does

posted on 14 Oct 2012, 02:33 5

11. wendygarett (unregistered)


As long as apps devs are ios oriented and pro Apple... Why we need the awesomeness of platform? Imagine android has no apps... Will you want it? lol even the most open system RIM os can't even catch up due to lack of apps support...

posted on 14 Oct 2012, 04:22 7

24. denied911 (banned) (Posts: 361; Member since: 31 May 2012)


sorry
apple have 700.000 apps
and android more than 675.000
in 1Q android will have more apps than apple
android FTW

posted on 14 Oct 2012, 04:26

25. wendygarett (unregistered)


Launcher?? No thanks :)

posted on 14 Oct 2012, 07:45 2

48. darkkjedii (Posts: 11190; Member since: 05 Feb 2011)


So apple won't get more also???

posted on 14 Oct 2012, 21:45

125. willard12 (Posts: 783; Member since: 04 Jul 2012)


I think he means that android will pass apple when he says "more apps". Considering about 100,000 of apple's apps are specifically for iPad, they probably already passed them.

posted on 14 Oct 2012, 07:04 1

37. TheDarkKnight (banned) (Posts: 88; Member since: 12 Oct 2012)


Really? The iPhone 5 is the fastest phone AVAILABLE right now.

posted on 14 Oct 2012, 08:44 1

60. darkkjedii (Posts: 11190; Member since: 05 Feb 2011)


According to benchmarks

posted on 14 Oct 2012, 07:44 2

47. darkkjedii (Posts: 11190; Member since: 05 Feb 2011)


According to all the tech sites, reviews, and YouTube videos it can.

posted on 14 Oct 2012, 03:44 6

19. Rocksteady (unregistered)


Read this and enjoy your idevice and its "apps"

http://www.phonearena.com/news/400000-apps-in-the-App-Store-have-never-been-downloaded-says-report_id32943

posted on 14 Oct 2012, 07:51

51. darkkjedii (Posts: 11190; Member since: 05 Feb 2011)


Well how many n the google play store haven't been downloaded? A lot of the apps n both stores are junk, malicious, and boring. There's probably only 4000-5000 really useful apps, if that many. Google play, and apples App Store r loaded with useless fart apps, and animal sound apps.

posted on 14 Oct 2012, 22:07 1

127. chaoticrazor (Posts: 2347; Member since: 28 Aug 2012)


yeah but difference is apple fans like yourself always use the app store as a reason why the iphone is better, you measure a phone by how many apps it has available not but the quality of the actual phone.

so when someone points out there are more useless apps that arent needed on the app store what do you do, straight away go at google play. defualt setting for apple trolls attach android when there precious apple are criticised in any way

posted on 14 Oct 2012, 08:22 1

55. TROLL (banned) (Posts: 4851; Member since: 13 Apr 2012)


Where is NonSequitr and chatoicrazar.....

posted on 14 Oct 2012, 08:30

58. darkkjedii (Posts: 11190; Member since: 05 Feb 2011)


They'll b here any minute :(

posted on 14 Oct 2012, 04:11 2

23. Xperia.pendragon (Posts: 3; Member since: 14 Oct 2012)


XD i like it goojoongya!!!

posted on 14 Oct 2012, 01:59 1

4. jshan (Posts: 191; Member since: 25 Dec 2011)


Yeapy..... Yeapy .....

posted on 14 Oct 2012, 02:05 12

6. ILikeBubbles (Posts: 302; Member since: 17 Jan 2011)


wow i can't believe that Apple is totally ostracizing themselves like this..

and this is nothing against Apple's hardware, they make a pretty amazing product, howver their politics i just do not understand... i'm sure it isn't what it seems and they're NOT throwing a temper tantrum against samsung because now they're finally starting to lose all their frivilous lawsuits....

but that's me not taking a side lol

posted on 14 Oct 2012, 06:45 4

34. JeffdaBeat (unregistered)


Well remember that all these guys are Apple's competitors. Samsung is a manufacturer, true, but they also make their own devices that compete directly with Apple. Same goes with Google. We may not like Apple Maps, but at some point they would have had to take their direct competitor's product off iOS. It would be the equivalent of being the Ford CEO and buying engines from Honda instead of building your own (although the car market is far broader). This is something that would happen eventually.

Also, this is also a big loss for Samsung. Apple is their number one client. If the number one smartphone and tablet maker is going somewhere else for their parts, Samsung is going to lose a lot of business because of it. And that's not picking sides...just open comment.

posted on 14 Oct 2012, 08:19

53. Aeires (unregistered)


First paragraph I agree with. It's sad that it had to come to this, but that's the way mobile seems to be going.

Second paragraph is interesting, I can't help but think of Forest Economics when I read things like that. While Samsung will be losing a big customer, their production demands will just be filled with other customers who now have opportunities to use Samsung as a supplier. Judging by the success of the Galaxy and Note series, Samsung's biggest customer will be Samsung.

Samsung is big enough and successful enough, they'll survive without Apple. Will Apple do well without Samsung quality? That remains to be seen.

posted on 14 Oct 2012, 08:27 1

56. darkkjedii (Posts: 11190; Member since: 05 Feb 2011)


Both companies will thrive, as well as miss each others components and business. U can't lose your number one client, and not feel the sting at least for awhile. Also u can't lose your number one component maker and not feel the sting for awhile. Apples feeling the sting of replacing maps, but anyone that thinks they won't rebound is silly...same goes for Samsung.

posted on 14 Oct 2012, 11:26 1

75. JeffdaBeat (unregistered)


And I mean, don't get me wrong. Samsung will indeed do just fine. But Apple is guaranteed business for them. If Apple's business is getting better, so is Samsung. It just sucks to not have that sure thing in your pocket anymore. Other companies can fill the void, but how much of it will they fill? What if those projects don't do as well? Samsung just doesn't have the sure thing anymore.

posted on 14 Oct 2012, 12:49

86. darkkjedii (Posts: 11190; Member since: 05 Feb 2011)


That's true

posted on 14 Oct 2012, 08:21 1

54. darkkjedii (Posts: 11190; Member since: 05 Feb 2011)


Well written, unbiased, and true bro.

posted on 14 Oct 2012, 09:22

65. Hemlocke (unregistered)


Well written explanation. I was shocked that it took Apple this long to remove manufacturers and companies who are competitors from the iPhone ecosystem, although there are still a few exceptions.

LG still makes screens, and it would take massive ramping of IGZO in-cell display production by Sharp, who is a competitor to a much lesser degree than LG, for Apple to cut them out of the equation.

posted on 14 Oct 2012, 02:11 5

7. TheDarkKnight (banned) (Posts: 88; Member since: 12 Oct 2012)


Yes! Get rid of Samsung crap, apple and once you're not depending on Samsung for anything................. KILL THEM..... SUE THEM

posted on 14 Oct 2012, 13:02 1

89. darkkjedii (Posts: 11190; Member since: 05 Feb 2011)


Darkknight your crazy man lmao. U sound like the lady from that Stephen King movie The Mist lol.

posted on 15 Oct 2012, 11:12

130. TheDarkKnight (banned) (Posts: 88; Member since: 12 Oct 2012)


The dark knight is not crazy. He is a silent guardian, a watchful protector, A DARK KNIGHT.

posted on 14 Oct 2012, 02:29 12

10. Topcat488 (Posts: 1141; Member since: 29 Sep 2012)


Back in the ole days the saying was... Never change a winning combination, but it seems that Apple is blind with madness. Going from a good Map to a crap map. Now they want to change the best part of the iphone overall (The Samsung Chips). Good luck with that in the future... (O_o) Not... hehehe

posted on 14 Oct 2012, 10:39

73. rusticguy (Posts: 2828; Member since: 11 Aug 2012)


Apple will have to switch from being a "Recipe" company to a real manufacturing company making each and everything that goes into their so called sexy devices. If that happens then i guess Iphone will costs $12000.00 as apple wants 300% profit in everything that they do.

Whoever makes parts for Apple will always foray into that market of making device also as greater profit is in value addition rather than supplying raw matrerials. So perhaps we are looking at Apple playing a game of musical chairs with all suppliers in coming years and more apologies from Tim Cook for one thing or the other :)

posted on 14 Oct 2012, 19:03

120. darkkjedii (Posts: 11190; Member since: 05 Feb 2011)


Shhhhhhhhhh too much hot air

posted on 14 Oct 2012, 02:39 4

14. Izzy_V (Posts: 216; Member since: 07 Jul 2012)


It's funny how the sheepple think this is a step forward for apple when it just further proves that apple knows Samsung, Google, and Android altogether have surpassed its device capabilities.

posted on 14 Oct 2012, 11:28

76. JeffdaBeat (unregistered)


Absolutely not. Apple and Samsung are competitors. Apple and Google are competitors. Why would you have your competitors be your suppliers as well? Even in drug dealing, this doesn't happen.

posted on 14 Oct 2012, 12:52

87. darkkjedii (Posts: 11190; Member since: 05 Feb 2011)


People just don't get it bro. Apple knows exactly what's its doing. It's a smart move also, competitor independence is needed n this day and age. Some people get on apple about maps, but ignore the fact that the main reason the moved from google early was due to googles refusal to allow turn by turn on googles iOS map app. Apple saw the need to go their own route. So b it.

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