Has Apple finalized its move away from Samsung to TSMC for chips?

Has Apple finalized its move away from Samsung to TSMC for chips?
We’ve heard it over and over again - Apple is trying to minimize its dependency on Samsung as its main chip manufacturer and is instead transferring silicon manufacturing to the Taiwan Semiconductor Manufacturing Company (TSMC). Korea Times now reports that it has all been finalized now and Apple will launch its new A7 chip in “the first half of next year.”

The Apple A7 is said to be built on the 20-nanometer node, a more precise and power savvy manufacturing method.

Moreover, Apple’s move to TSMC is said to put Samsung’s chip manufacturing division into serious trouble and might even lead to Samsung closing manufacturing lines.

However the Apple A7 will likely not end up in this year’s iPhone, but rather in the one that follows next year. For this year’s iPhone launch Apple is rumored to use a slightly modified version of its A6X chip.

So far, Cupertino has been on a steady yearly update cycle for iPhone following a tick-tock model where a redesign is launched one year and the next one sees mostly improvements in software. This next iPhone falls on a tock cycle so it makes sense to expect it would focus on software innovation rather than on hardware and these latest rumors confirm that.

source: Korea Times via SlashGear



1. xperiaDROID

Posts: 5629; Member since: Mar 08, 2013

Oh, so no A7 for this year's iPhone? I'm not gonna wait till 2014. YAWN!!!!

2. ckoch125

Posts: 193; Member since: Oct 29, 2012

I don't think this will hurt samsung as much as you think. Now they will be able to produce for other companies and not have to bend over backwards with such low prices either. Plus will they be able to keep up with apple orders? Look at what happened when they used screens from others and the amount of problems/shortages they had and people crying for samsung screens. This might actually end up worse for apple than samsung.

13. htc_prep

Posts: 303; Member since: Oct 09, 2009

According to this story the chips that are beginning to be manufactured this year are going to be going into a device that's going to be unveiled next year. Giving it a year to stock pile chips. This isn't like the snapdragon 600 pot that manufacturers reach into its a proprietary chip apple designed for apple products, Thus relieving the stress of producing chips for the masses in a rush.

20. KennethP4V

Posts: 33; Member since: Mar 15, 2013

i think it could seriously hurt samsung's chip manufacturing plant because who uses samsung's chip? Basically just Samsung and Apple. If apple bounce, that's approximately 50% loss or even more, and Samsung doesnt use all exynos chips for their phones, sometimes they use Qualcomm, Nvidia, and for the cheap cheap samsung's models they even use the Mediatek chip. Now samsung's own exynos is only used on a few lines of Galaxy. U would still be able to argue, well the galaxy sales r good, but taking away the hundred millions of idevices, it hurts. At this moment i dont think u can find any OEM wanting to purchase the chips from Samsung, for example HTC and LG has their own source, they either use Qualcomm or Nvidia, the OEMs from China will most likely stay with mediatek for dirt cheap price hahah

3. MEeee

Posts: 438; Member since: Oct 19, 2011

More Texans will be get layoff. I thought Tim said he'll bring more jobs to America. The only 2 things that are made in America for iProducts are Samsung processors and Corning gorilla glass.

8. gwuhua1984

Posts: 1237; Member since: Mar 06, 2012

He talked about creating jobs by bringing the production/assembly to the US, not the manufacturing.

22. KR_Maintanker

Posts: 5; Member since: May 02, 2012

I'm South Korean PA reader and few days ago, there is a news that Samsung continues to build System LSI(like AP) Plant at Hwasung, South Korea. That plant building was stopped last year. Maybe Sammy is not comfortable for losing Apple chips, but I'm happy with returning many good jobs from North America. I think sammy makes enough money already and they must return many good jobs to their home country although cost is needed a little high. Is there any TSMC's Plant in North America? It's economical World War.. The GOOD JOB WAR... Semiconductor manufacturing plant is so good source of many jobs that ordinary people can get, not Wall Street's so called smart guys.

4. TechBizJP08

Posts: 495; Member since: Mar 25, 2013

too bad for iPhone fans. Looks like you have to choose from XZ,GS4,HTC1,LGOG..

23. TheBitterTruth unregistered

HTC1 please.

5. cezarepc

Posts: 718; Member since: Nov 23, 2012

Samsung won't close anything. They can just sell to other OEMs. The more likely scenario would be Qualcomm having Samsung eating up shares, specially now that Novathor, TI-OMAP, are good as out of the game.

9. gwuhua1984

Posts: 1237; Member since: Mar 06, 2012

Well, this is good for TSMC. Taiwanese companies had been under fierce competition with Samsung, this will be a good sign and perhaps confidence and hope for the rest of the Taiwanese companies.

12. Vegaviet

Posts: 8; Member since: Apr 10, 2013


15. The_Innovation

Posts: 648; Member since: Jul 18, 2012

Apple has all the patents, they just choose not to use them, yet. Why would they? From a business perspective. Samsung throws everything it has to try and sell. Apple doesn't need to do much to sell. The thing practically sells itself.

16. osmaankhaan unregistered

Its samsung that doesn't wanna sell to apple, samsung already has replacement customers in China to sell their products.

17. Dion25

Posts: 42; Member since: Jul 25, 2012

Bad for Samsung. After this announcement, Ss shares fall, and they lost 10 Billion off their market value OUCH! Apple has the power to make you or break you. They have too much industry muscle.

18. The_Innovation

Posts: 648; Member since: Jul 18, 2012

Don't talk about shares. Apple went from 702 down to 400's on their stock and lost about $200 billion in the market cap.

19. HDShatter

Posts: 1021; Member since: Jan 17, 2013

iphone 5s will be sure to make it lower to the 300s.

21. KR_Maintanker

Posts: 5; Member since: May 02, 2012

It's not because Apple, but because young mad pig of North Korea.

* Some comments have been hidden, because they don't meet the discussions rules.

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