Apple's Project Azalea is believed to be a whole strategy that Apple will employ to lessen its reliance on Samsung's chips. Apple is said to have TSMC in mind to produce the A-series chips used in the Apple iPhone, Apple iPad and Apple iPod touch. TSMC allegedly bid on Apple contracts to produce the chips for these devices, but did not have the production capabilities to meet Apple's demands, which explains why the rumors that the new factory is being built to supply Apple are so persistent.
Meanwhile, New York, California, Texas, and Oregon are said to be in the running for the new facility. TSMC officials sat down with representatives of New York to discuss building a 3.2 million square foot facility. But replacing Samsung is going to be a difficult task for Apple to even consider, especially now that Samsung has received the green light to spend $3.6 billion to upgrade its fab plant in Texas, which produces the A-series processors for Apple. The upgrade is expected to be completed by the middle of next year.
As we just told you the other day, TSMC is raising the amount it budgets for capital expenditures to a record $9 billion in 2013.
source: TaipeiTimes, EETimes via Slashgear