Apple Finally Signs Deal with TSMC Kicking Samsung to the Curb

So long, Samsung, and thanks for the chips. That's the message Apple effectively sent its rival in the mobile space after inking a deal with Taiwan Semiconductor Manufacturing Company (TSMC) to build and supply the complex processors found in its iPhone, iPad, and iPod touch devices. The impending breakup with Samsung has been a long time coming, though even with the TSMC deal in place, Samsung will stick around at least through 2014.

According to The Wall Street Journal, Samsung will stay on as the primary supplier through next. For one reason or another, TSMC isn't able to reliably supply Apple with processors at the pace it needs, forcing the Cupertino company to continue to rely on Samsung for just a little while longer before it's kicked to the curb for good.

TSMC

The relationship between Apple and Samsung has been a rocky one, to say the least. Both companies have fought each other in various courts around the world accusing one another of patent infringement, and the two are bitter rivals in the mobile space. At the same time, their working relationship has been mutually beneficial.

Even so, Apple's been shoving Samsung out the door as quick as it can. Apple stopped buying iPhone panels from Samsung and reduced iPad display purchases. In addition, Apple has been buying flash memory chips in increasing quantities from other chip makers.