Apple to Shift iPad A6X SoC Orders From Samsung to TSMC
January 2, 2013 11:21 AM
comment(s) - last by
Apple looks to eliminate reliance on its bitter smartphone rival
Embroiled in an international patent dispute, Apple, Inc. (
) is looking to drop the "friend" bit from its "frienemy" relationship with Samsung Electronics Comp., Ltd. (
world's top two smartphone makers
, the American and South Korean electronics firms have seen an increasingly belligerent relationship in the smartphone industry; and yet they still are bound by a close tie. Apple pays Samsung to
manufacture the semiconductor chip "brains"
of its mobile devices.
But Apple is working hard to dump Samsung. Reports came on Wednesday that Apple was shifting contracts for its
fourth generation iPad's A6X system-on-a-chip
(SoC) to Taiwan Semiconductor Manufacturing Comp., Ltd. (
). The news was first reported in the
. The report was
later picked up
and other international outlets.
In 2012 Apple and Samsung are estimated to have done
$12B USD in business
together. However, as Apple shifts contracts to other chipmakers like TSMC that number is expected to dwindle.
2013 should still see large payments from Apple to Samsung. The TSMC production of iPad SoCs won't even hit the trial phase until sometime this quarter, and likely won't reach volume until the middle of the year if all goes well. And there's no guarantee all will go well; Apple
previously looked to shift away
from Samsung only to see those efforts reportedly
stymied by poor results
Samsung should also be able to soften the blow of any lost business from Apple with its
increasing relationship with Qualcomm
), maker of the Snapdragon SoC line which sees frequent use in Android and Windows smart phones/tablets. While Apple is fleeing Samsung due to external factors, Qualcomm appears to be
moving away from TSMC
directly due to its yield performance. Of late Samsung has begun to produce
Snapdragon S4 chips
for Qualcomm, a contract which TSMC was originally expected to exclusively supply.
Some reports have indicated that Samsung may look to punish Apple for its
$1.05B USD patent infringement victory
against it by raising prices on i-device SoCs. However, other reports dispute these claims.
AFP [on Asia News Daily]
This article is over a month old, voting and posting comments is disabled
RE: Some more data
1/4/2013 3:01:07 AM
Apple bought P.A. Semi and Intrinsity and now tunes/tweaks their own arm based arch, which Samsung makes for them. Samsung wasn't up to snuff in that area. A long time ago they were in the PPC Alliance. More similarities with arm and ppc based chips (RISC). They might as well buy AMD and ARM Holdings to round out their desktop based icrap line too.
That would take care of all mobile and desktop chips including video (If AMD/ATi). The rumors of a real Apple TV also. They would have an excellent fab and possibly take on some new business from others. Talk about massive profits, more than even now!
Granted the costs could make or break them as yes Fabs are expensive all around.
Considering rumors of Apple and Intel having differences. Now the sh*t storm with Samsung. Mind you they got pawned +~20% increase in the new contract on the supply of chips from Sammy. I would guess to cover the loss from the lawsuit if Apple does win.
I would not be surprised if Apple jumps in bed with Micro$oft in such a venture. Considering Micro$oft is practically a troll in the phone arena. They bring in most of there money from "Licensing deals with Android Handset makers". That would be a good way to leverage Nokia into Apples New Fabbed Chips, whatever they may end up being. Apple can still learn a few things from MicroShaft, as bad as I hate to say that.
It is the same old game just new players. Anyone remember back in the day of Micro$oft against Apple. Just swap one name with Google. Then Apple would be a true monopoly.
There is a true advantage to owning the supply chain over commanding/controlling one. If enough effort was put forth perhaps Sammy may one day have to have Apple Fabs print those Exynos chips..... lol
“I will spend my last dying breath if I need to, and I will spend every penny of Apple’s $40 billion (Currently 121B 12/03/2012-Google) in the bank, to right this wrong…I’m going to destroy Android…I’m willing to go thermonuclear war on this.”
"Death Is Very Likely The Single Best Invention Of Life" -- Steve Jobs
Apple Unveils 7.9" iPad mini, 16GB Model Starts at $329
October 23, 2012, 1:50 PM
Doomsday for Samsung in U.S., Jury Rules it Slavishly Infringed Apple's Patents
August 24, 2012, 5:56 PM
Samsung to Crown Texas Fab With $4B USD Revamped SoC Line
August 21, 2012, 4:16 PM
Qualcomm Partners With Samsung for Chip Production
July 5, 2012, 1:33 PM
Samsung and Apple Abandon Talks, Commit to Total "Nuclear" War
May 24, 2012, 3:02 PM
Tim Cook Touts Apple’s Product Portfolio, Performance in Letter to Employees
October 21, 2014, 8:05 AM
Lenovo Once Again The Top Global PC Maker, Apple Takes 50% of PC Profits
October 9, 2014, 7:46 AM
It’s Official: HP to Split Into Two Business Units
October 6, 2014, 8:14 AM
Quick Note: HP Plans to Split PC, Enterprise Units
October 5, 2014, 4:31 PM
Samsung Prepping 14-nm for Apple A9 Production, Handling 30 Percent of A8 Orders
October 2, 2014, 1:17 PM
Lenovo to Complete $2.1B Acquisition of IBM's x86 Server Operations on October 1
September 29, 2014, 3:19 PM
Most Popular Articles
Amid Theater Boycott Netflix Defiantly Plans New Movies, Plus 3 TV Shows for 2015
October 24, 2014, 7:30 PM
AT&T Defeats Purpose of New Apple SIM, Locks iPad Air 2 SIMs to Its Network
October 24, 2014, 2:17 PM
CVS, Rite Aid Kill Unofficial Apple Pay Support, Burn Google Wallet Users in the Process
October 25, 2014, 5:26 PM
1 Million Credit Card Activated on Apple Pay Within 72 Hours, Walmart CEO Hopes Visa "Suffers"
October 28, 2014, 8:17 AM
Microsoft's Figures Show Desktop Users Flocking to Windows 10 Preview
October 27, 2014, 11:04 AM
Latest Blog Posts
Costco Gives Employees Thanksgiving Off; Wal-Mart Leads "Black Thursday" Charge
Oct 29, 2014, 9:57 PM
"Bear Selfies" Fad Could Turn Deadly, Warn Nevada Wildlife Officials
Oct 28, 2014, 12:00 PM
The Surface Mini That Was Never Released Gets "Hands On" Treatment
Sep 26, 2014, 8:22 AM
ISIS Imposes Ban on Teaching Evolution in Iraq
Sep 17, 2014, 5:22 PM
Space Terrorism is a Looming Threat For the United States
Apr 23, 2014, 7:47 PM
More Blog Posts
Copyright 2014 DailyTech LLC. -
Terms, Conditions & Privacy Information