Report says that Apple is replacing Samsung with Unimicron to produce Ax chips

Report says that Apple is replacing Samsung with Unimicron to produce Ax chips
A trade publication in Taiwan is reporting that Apple is moving orders away from its arch rival Samsung for its ARM related chips. Samsung had produced the line, like the current A6X, from an in-house design developed by Apple. The latter is now allegedly turning to Unimicron Technology Corporation to manufacture the Ax chips. Apple and Samsung have been fighting each other in court with the latest battle involving the Korean based firm's request for a sales ban in the U.S and Europe for the Apple iPhone and Apple iPad over Apple's use of Samsung patents without a license. The problem is that these are standards-essential patents and if Apple and Samsung cannot agree on a licensing fee, the court will decide the price.

You know that Apple wouldn't let Unimicron make important parts for its most important devices without passing a test. As a result, the company did produce, on a smaller scale, the basic ARM foundation for Apple's processor known as the "chip scale package". According to China Times, Unimicron will increase production for Apple once its new production facility is opened.

Apple is also giving TSMC the assignment of producing some of its Ax chips. Ther Ax processors are currently made by Samsung at a factory in Austin that Samsung is expanding. In the meantime, Apple has moved away from obtaining batteries and panels for the Apple iPad from Samsung.

source: Electronista

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31 Comments

1. jbash

Posts: 345; Member since: Feb 07, 2011

Where is unimicron's facility? Another manufacturing facility job sent overseas most likely. Why doesn't it surprise me?

5. quakan

Posts: 1418; Member since: Mar 02, 2011

Everything is done globally now, are you just now finding this out?

18. MeoCao unregistered

I think what Apple is doing now is too late, Apple massive orders helped SS to have their own supply chain as a foundation for it's wildly successful mobile business. Without Apple's orders SS would have had a lot more difficulties to get to this point. Now SS supply chain has become so strong and Apple's orders withdrawal cannot harm SS, but it on the other hand may severely affect Apple's own supply chain both in price and quality. Another fiasco of Apple Maps caliber for Tim Cook is brewing?

14. AnTuTu

Posts: 1610; Member since: Oct 14, 2012

and customers gonna replace Apple with Samsung...!!!

2. Adithya7184 unregistered

unimicron??? i never heard that before...

19. dan86

Posts: 298; Member since: Mar 17, 2012

Expect more creepy iDevices now with mediocre chinese standard!

3. ckoch125

Posts: 193; Member since: Oct 29, 2012

Apple keeps moving away from the tried and true and look what they get, the iPhone 5 has a ton of issues. I think in the long run this will hurt apple as already their facilities can't keep up with demand that Samsung and others could have kept up with demand. Perfect example ipad mini and moving away from Samsung screens

4. TheLibertine

Posts: 484; Member since: Jan 15, 2012

The A...-chips, despite iOS' flaws, are great silicon, so are the Exynos. Hopefully, moving away from Samsung does not mean moving away from that quality.

24. Droiddoes unregistered

I hope it does. I hope these unimicrom or wtf ever cheap chinese crap chips they are fail hard and cost them millions in lost revenue/warranty issues. Serves them right for sh*tting on the folks that basically make the iNovelties (Samsung)

6. syedzain

Posts: 175; Member since: Oct 08, 2012

now we will get more power in iphones,, great going apple....

7. roscuthiii

Posts: 2383; Member since: Jul 18, 2010

You're special.

11. Berzerk000

Posts: 4275; Member since: Jun 26, 2011

Yeah, no. Samsung has always been the number 1 mobile chip producer in terms of power. The only company that could beat them is Intel, but that'll be a few years down the road, if at all.

29. rusticguy

Posts: 2828; Member since: Aug 11, 2012

So if sales aren't good Apple has one more shoulder to fire their propaganda gun (a mechanism to fool) from ... chip supplier has yield problems supplies are short :)

8. reyenrique

Posts: 99; Member since: Oct 07, 2012

that is great for the two company an let see what will happin next.. or who will be crawling back . in the next episode. ^-^

9. jroc74

Posts: 6023; Member since: Dec 30, 2010

Well....we and Apple are about to find out how important Samsung was for these iDevices.. Will be an interesting next few years. Good luck Unimicron. Almost sounds like a Transformer robot....

10. gallitoking

Posts: 4721; Member since: May 17, 2011

Let's hope Unimicron doesn't bite the hand that feeds them unlike others

15. shuaibhere

Posts: 1986; Member since: Jul 07, 2012

Why not in other way??? Apple doesn't bite the hand which gave them almost every internal part of iphone....

16. AnTuTu

Posts: 1610; Member since: Oct 14, 2012

gallitoking:- Sorry to say mate but you are totally f**ked up in your fruit world...!!

17. Berzerk000

Posts: 4275; Member since: Jun 26, 2011

The iPhone wouldn't be the same without Samsung. Without Samsung, the iPhone wouldn't be as smooth as we all know it to be because Samsung is top dog when it comes to mobile processors. That was the biggest argument for Apple fans debate against Android, that it wasn't as fast as the iPhone. The entire reason why probably more than half of the iPhone users use the iPhone is because it's fluid, and it's fluid BECAUSE of Samsung. The reason the iPhone even works is because of Samsung. The reason you can see anything on the iPhone is because of LG (and a few others I believe), the reason you take such good pictures with the iPhone is because of Sony. The reason you can store those pictures, and all your apps and such is because of Samsung. Sure, Apple could have replaced each of those manufacturers with someone else, but would it have been as good as it was? Not even close. Think of it this way, now Samsung has more room to produce its own Exynos chips to keep up with the demand for the upcoming GS4. The iPhone won't be as fluid, and Samsung can make more supply for all those who switch over, everyone wins ;)

25. Droiddoes unregistered

Look, I get that you have a crippling learning disability and I am very sorry you have to deal with that, but you do understand that apple is the one that killed the relationship right? I mean, not even you could possibly be that deluded. Also you missed a comma and a period, some day you will be able to form a sentence. Some day...

30. rusticguy

Posts: 2828; Member since: Aug 11, 2012

It will because it's not that Apple has got patent to produce smartphones .. not yet at least although that's what Thermonuclear crap was aimed at ... so whoever has the capacity to make phones will make phones ... and Apple wil be playing game of musical chairs hopping from one to another untill they run out of all chairs :D

12. zig8100

Posts: 243; Member since: Dec 13, 2012

Lets see how reliable those chips are going to be. On the flip side its OK that they switch because Samsung will need to produce all the chips they can handle when the introduce the Galaxy S4 being that they we sell 4 times as many phones then the 5S.. Plenty of Iphone 4 n 4s people are waiting in the wings to switch over. BYE BYE IPHONE , APPLE N IOS.

20. redmd

Posts: 1935; Member since: Oct 26, 2011

many have switched to S3 and note 2 from iphones. I can attest to that.

13. rickywinataa

Posts: 262; Member since: Apr 05, 2012

i eager to see whether can these companies keep up with apple's demand. samsung has proven that they can keep up but since apple decided to move away from samsung their distribution rate has gone down

22. ajac09

Posts: 1482; Member since: Sep 30, 2009

good samsung can now worry about its own products and not worry about giving apple what it needs.

26. Droiddoes unregistered

This. Hopefully they spend less time dealing with apples BS litigation and general whining and can do what they do even better: making products that outclass iNovelties in every way.

23. jaytai0106

Posts: 1888; Member since: Mar 30, 2011

I think Apple should just start its own factories. They got the money to put in it and they can adjust their plants as the demand varies.

27. Droiddoes unregistered

It would be nice but it won't happen. apple loves money and overcharging people, they are not going to tap into that $700 billion they have sitting in the bank. Cheap chinese labor is their bread and butter.

31. jaytai0106

Posts: 1888; Member since: Mar 30, 2011

I agree with that, but they can just start their own factories in China.

28. rusticguy

Posts: 2828; Member since: Aug 11, 2012

For batteries Apple has not moved away by choice. Samsung refused to supply so basically Samsung moved away from supplying batteries to Apple :)

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