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Water cooler rumor: Samsung expects to lose chip orders from Apple; plans to build new plant canceled?

Posted: , by Alan F.

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Water cooler rumor: Samsung expects to lose chip orders from Apple; plans to build new plant canceled?
You might want to cut this story up into small pieces because it might be hard to swallow. There is some speculation that Samsung has cancelled the construction of a new logic fabrication facility that was named Line-17. According to the rumor, Samsung is doing this because it is about to lose orders from Apple for the latter's next-generation application chips. The plant was scheduled to be have been built in  Hwaseong, Gyeonggi Province at a cost of  $3.7 to $5.5 billion USD. Expected to go online in Q1 2014, 80,000 12 inch wafers per month were supposed to be churned out by the facility.

TSMC might replace Samsung as a chip supplier for the Apple iPhone and Apple iPad

TSMC might replace Samsung as a chip supplier for the Apple iPhone and Apple iPad

Sources for Digitimes say that Samsung will no longer be the lone supplier of chips that power the Apple iPhone and Apple iPad and the drop in orders has the Korean based manufacturer thinking twice about expanding production of its Logic-Integrated Circuits. As early as June 2011, there was talk about Apple leaving Samsung for TSMC and now with the latter ready to churn out chips using the 20nm process, Apple is said to be ready to give the company its first order. Last month, Piper Jaffray analyst Gus Richard stated that Apple was talking to TSMC about its 20nm technology, and it would appear that both sides are now past the talking stage.

Meanwhile, Hwaseong isn't totally out of luck. Samsung this past June announced it would build its third LSI fabrication line there, with the factory expected to be completed in 2013. The line will turn out highly advanced mobile application chips using both 20nm and 14nm processes. In August, TSMC turned down $1 billion bids from both Apple and Qualcomm for all of the 20nm production the company could produce, on an exclusive basis. The reason for the rejection was that the Taiwan based semiconductor giant wanted to stay involved in the broader smartphone market.

source: Digitimes, AppleInsider

18 Comments
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posted on 07 Nov 2012, 13:51 13

1. PhenomFaz (Posts: 1064; Member since: 26 Sep 2012)


Really we are going to discuss water cooler rumors now on a tech news site!
PA just got a lot jucier in gossip :)

Sammy shouldn't worry though since there are a lot of other buyers who sammy can sell to at a higher profit margin

posted on 07 Nov 2012, 14:01 11

3. Aeires (unregistered)


Forest economics, other customers will fill Apple's demands over time, just like new trees grow when one dies.

posted on 07 Nov 2012, 20:52 2

18. Nadr1212 (Posts: 741; Member since: 22 Sep 2012)


This is just like Apple, they sue a company multiple times, ask it to make it hardware, and then trade it for another company
Apple's like a horny 4 one man a day woman striper!!

posted on 07 Nov 2012, 14:01

4. bucky (Posts: 1297; Member since: 30 Sep 2009)


no there arent.

posted on 07 Nov 2012, 20:50 1

17. Nadr1212 (Posts: 741; Member since: 22 Sep 2012)


Ooh, Apple and TSMC are PAST the talking stage....
Purr!

posted on 07 Nov 2012, 14:07 1

6. Dr.Phil (Posts: 865; Member since: 14 Feb 2011)


Not really. Apple was Samsung's largest customer when it came to chipsets. Perhaps if Samsung started selling it's Exynos chipsets to other Android manufacturers like Sony and Motorola, it could make up for some of the loss.

posted on 07 Nov 2012, 18:25

13. jroc74 (Posts: 4720; Member since: 30 Dec 2010)


Thats basically what the post said.....lol.

I cant see other manufactures not buying from Samsung. Apple just happened to be the biggest buyer. It might take 2 or more companies to fill Apples absence....but it can happen.

posted on 07 Nov 2012, 13:59

2. Aeires (unregistered)


Weren't they planning on building a plant in Texas?

posted on 07 Nov 2012, 14:02 8

5. _Bone_ (Posts: 2104; Member since: 29 Oct 2012)


Good thing Samsung gains more market share than chips it loses to Apple.

posted on 07 Nov 2012, 14:08 1

7. Kronic (banned) (Posts: 321; Member since: 11 Sep 2012)


If they made a quad core A6, samsungs exynos 4 quad would have been destroyed. A6X is a beast of a SOC but I think apple could set new records. I am sure the A7 will be amazing.

posted on 07 Nov 2012, 14:16 4

8. infernal88 (Posts: 113; Member since: 08 Jun 2012)


i doubt that an A6 will fair that gd if it were running on android device ... it is all about iOS being better optimized

posted on 07 Nov 2012, 15:14 1

10. Berzerk000 (Posts: 3882; Member since: 26 Jun 2011)


Eh, maybe. All that's special about Apple's processors is the outstanding GPU performance. CPU wise there's nothing too special about Swift; not bad certainly, but nothing too amazing. The better performance is due to iOS being heavily optimized. If the A6 were on an Android device it would be noticeably less amazing than it is on iOS just due to how much more resources Android uses.

posted on 07 Nov 2012, 15:20

11. PhenomFaz (Posts: 1064; Member since: 26 Sep 2012)


yup thats what Apple fans keep hoping for...we might get the good stuff next year that Android has this year :)
A7 will be really good...but it just wont be as awesome as the Exynos 5 :)

posted on 07 Nov 2012, 14:59 1

9. doejon (Posts: 317; Member since: 31 Jul 2012)


nope not realy! cuz ios cant handel real multitasking only fake pseudo multitasking lol!
let any ios do multitasking and we will see the "real" ios - a laggy slow ios!!

or disable the multitasking and the customisation on android
and u will see how android will f**k out the s**t of ios 4 sure!!

posted on 07 Nov 2012, 15:23

12. doejon (Posts: 317; Member since: 31 Jul 2012)


this was actually the replay of 8. infernal88 posted on 1 hour ago -sorry 4 that..

posted on 07 Nov 2012, 18:29

14. lyndon420 (Posts: 1688; Member since: 11 Jul 2012)


Sammy doesn't need apple. The further they can distance themselves the better. Like seriously...why keep dealing with businesses that constantly drag you through the courts over BS.

posted on 07 Nov 2012, 19:12

15. darkkjedii (Posts: 10128; Member since: 05 Feb 2011)


Why don't u go to Samsung headquarters and tell them they don't need apple. Since u r a armchair CEO, tell Samsung they don't need the billions the make from apple. Why you're at it tell lebron James he doesn't need his nba salary, and tell the Yankees they don't need to charge ticket prices. Samsung is not stupid, they r n the business of making money not letting it go

posted on 07 Nov 2012, 19:22 1

16. rusticguy (Posts: 2820; Member since: 11 Aug 2012)


oooh Samsung is worried now as Water cooler rumours have it that Apple is thinking of making washing machines, microwave, dishwashers, refrigerators ... c'mon Apple has seen a 20% drop already in it's journey of "Most Valuable" crap and it would come down further.

Good if this happens ... at least that will take the possibility of "complacency" creeping in becomes less and delayed as far as samsung goes and keeps Apple in "Catching Up" mode forever :D :D

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