Report: Apple looks to replace Samsung as chip vendor

Report: Apple looks to replace Samsung as chip vendor
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..

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

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134 Comments

1. jstahl

Posts: 79; Member since: Sep 03, 2012

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

8. darkdroid

Posts: 44; Member since: Sep 13, 2012

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

30. syedzain

Posts: 175; Member since: Oct 08, 2012

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

45. darkkjedii

Posts: 31293; Member since: Feb 05, 2011

Lol... I know huh.

44. darkkjedii

Posts: 31293; Member since: Feb 05, 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.

12. willard12 unregistered

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.

42. ZEUS.the.thunder.god unregistered

lol +1. you made my day bro.

50. darkkjedii

Posts: 31293; Member since: Feb 05, 2011

The Samsiphone galaxy s5

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.

18. jroc74

Posts: 6023; Member since: Dec 30, 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.

36. marekzy

Posts: 4; Member since: Aug 03, 2012

So, iphone is so weak :)

66. sarb009

Posts: 322; Member since: Jun 15, 2011

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

80. TROLL

Posts: 4851; Member since: Apr 13, 2012

That was funny. Lmao.

93. syedzain

Posts: 175; Member since: Oct 08, 2012

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

105. darkkjedii

Posts: 31293; Member since: Feb 05, 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

112. chaoticrazor

Posts: 2347; Member since: Aug 28, 2012

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

74. loli5

Posts: 76; Member since: Oct 08, 2012

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

94. syedzain

Posts: 175; Member since: Oct 08, 2012

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

97. chaoticrazor

Posts: 2347; Member since: Aug 28, 2012

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

114. rusticguy

Posts: 2828; Member since: Aug 11, 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

116. darkkjedii

Posts: 31293; Member since: Feb 05, 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.

106. darkkjedii

Posts: 31293; Member since: Feb 05, 2011

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

126. chaoticrazor

Posts: 2347; Member since: Aug 28, 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

83. THETECHTEAM

Posts: 82; Member since: Dec 12, 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!

122. Friendlysky

Posts: 54; Member since: Jul 04, 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.

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...

3. jstahl

Posts: 79; Member since: Sep 03, 2012

huh?? engrish??

9. fargeek

Posts: 2; Member since: Oct 14, 2012

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

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...

24. denied911

Posts: 361; Member since: May 31, 2012

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

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