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Samsung will now fill the void by making chips for the likes of Qualcomm and even for its own products

If Apple and Samsung's turbulent relationship was made into a soap opera, this episode would feature continued separation between the two and Apple's "other lover."

Apple recently signed a new supply deal with Taiwan Semiconductor Manufacturing Co. (TSMC) for iPhone and iPad chips. These orders from Apple will reportedly account for 8 percent of TSMC's 2014 total revenue if Apple buys 30 percent of its chips there, according to Credit Suisse analysts.

If Apple bumps this up to 60 percent in 2015, it will make up 15 percent of TSMC's revenue for that year. 

Apple has been distancing itself from Samsung due to competition between Apple's iPhone and Samsung's Android-powered smartphones (such as the Galaxy line). The two have also had an ugly patent war that has soured relations over the years.

Apple's new deal with TSMC isn't great news for Samsung, but it will likely fill the void by making chips for the likes of Qualcomm and even for its own products. 


[Image Source: Nerd Array]

At the Consumer Electronics Show (CES) back in January, Samsung's President of LSI business Stephen Woo said that it's crucial for the South Korean electronics maker to focus on alternatives to Apple when it comes to the chip sector. In fact, Samsung has been supplying Exynos quad-core chips to Chinese smartphone company Meizu and also to Lenovo's K860 LePhone.

According to Goldman Sachs, Apple will purchase about $8.8 billion USD worth of chips from Samsung this year, which is about 80 percent of Apple's allowance for processors, memory chips and screens. But Apple is expected to move 30 percent of its business away from Samsung next year and about 80 percent by 2017.

It's unlikely that Apple will give all of its chips business to TSMC, since it doesn't want to put all of its eggs in one basket. TSMC will begin supplying the processors in early 2014. 

Chips aren't the only hardware Apple and Samsung are phasing out in their relationship. Samsung Display, which has provided Apple with liquid crystal display (LCD) panels for its iPhones and iPads over the years, officially severed its contract with the iDevice maker last fall. Samsung cited cost as the main issue, since Apple has started using Samsung competitors with better prices for displays. Hence, Apple was expecting bigger discounts from Samsung. 

Sources: The Wall Street Journal, Market Watch



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RE: Samsung displays
By TakinYourPoints on 7/7/2013 10:37:04 PM , Rating: 2
You make it sound like plasmas are as sensitive to lighting conditions as a projector. It simply isn't the case. Once you have the picture on the reflections aren't there in most practical situations.

I understand if brightness and reflections are an issue, but you make it sound so absolute. LCD is an objectively extreme downgrade in picture quality but believe me, I do understand if there are legit physical constraints preventing you from having one.

Do you have windows directly opposite your screen? Did CRTs just drive you nuts ten years ago?


"I want people to see my movies in the best formats possible. For [Paramount] to deny people who have Blu-ray sucks!" -- Movie Director Michael Bay














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