Apple Cutting Samsung’s Share of A8 Chip Production


The Verge (via  Korean daily Hankyung) is reporting that Apple will be cutting Samsung’s share of their next-generation A8 Chip. According to the report most of the order will go to Taiwan Semiconductor Manufacturing Co. (TSMC), according to sources.

“TSMC will be responsible for 60 to 70 percent of the manufacturing of the A8 processor, with the remainder going to Samsung,” Amar Toor. “The South Korea-based company has reportedly signed a deal to manufacture the chip, though it the contract is estimated to cover just 30 to 40 percent of total production for the A8.”

This report supports earlier article by the Wall Street Journal. According to WSJ, “Taiwan Semiconductor Manufacturing Co. has pulled off its biggest coup yet: winning over Apple Inc. as a chip client and, in the process, giving heavyweight rival Samsung Electronics Co a poke in the eye.”

At the time the report suggested that Apple was  unlikely to shift all chip manufacturing orders to TSMC because Apple would prefer to diversify its supply base to cut risk.

“It also does not justify the effort to move Apple’s old chips that are still used in Apple’s older versions of iPhones and iPads. In addition to Samsung and TSMC, Intel is a very credible contender for Apple’s foundry business as well,” said Mark Li, an analyst at Bernstein Research.

This clearly appears to be the case.

Posted by | Posted at September 30, 2013 09:30 | Tags: , , ,
Storm is a technology enthusiast, who resides in the UK. He enjoys reading and writing about technology.

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