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

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.

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



1. PhenomFaz

Posts: 1236; Member since: Sep 26, 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

3. Aeires unregistered

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

18. Nadr1212

Posts: 741; Member since: Sep 22, 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!!

4. bucky

Posts: 3776; Member since: Sep 30, 2009

no there arent.

17. Nadr1212

Posts: 741; Member since: Sep 22, 2012

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

6. Dr.Phil

Posts: 2340; Member since: Feb 14, 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.

13. jroc74

Posts: 6023; Member since: Dec 30, 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.

2. Aeires unregistered

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

5. _Bone_

Posts: 2155; Member since: Oct 29, 2012

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

7. Kronic

Posts: 321; Member since: Sep 11, 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.

8. infernal88

Posts: 113; Member since: Jun 08, 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

10. Berzerk000

Posts: 4275; Member since: Jun 26, 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.

11. PhenomFaz

Posts: 1236; Member since: Sep 26, 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 :)

9. doejon

Posts: 411; Member since: Jul 31, 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!!

12. doejon

Posts: 411; Member since: Jul 31, 2012

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

16. rusticguy

Posts: 2828; Member since: Aug 11, 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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