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More Evidence That Samsung Excluded From Apple A7 Chip Development, TSMC Tapped Instead

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News Posted: Wed, Apr 10 2013 3:07 PM
The divorce between Apple and Samsung was written on the wall when the former first attacked the latter with a lawsuit, but the actual split has been gradual. Apple has relied heavily on Samsung components for its displays and mobile processors, but as we’ve heard a few times before, Samsung is not participating in the development of Apple’s upcoming A6X and A7 chips.

The latest news on that front is that Apple has tapped TSMC to replace Samsung in developing the A7 chip (images leaked here), reports the Korea Times. The outlet quoted a Samsung partner executive as saying, “TSMC has begun ordering its contractors to supply equipment to produce Apple’s next processors using a finer 20-nanometer level processing technology.” This jibes with rumors from last summer and fall that TSMC would develop an entire fab dedicated to Apple products.

TSMC
TSMC Headquarters

Losing Apple will certainly negatively impact Samsung’s bottom line and could force the company to shut down some chip manufacturing lines, but another KT source indicated that Samsung will ramp up production of chips for NVIDIA to make up some of that lost ground. Of course, Samsung also has a sizable and popular fleet of mobile devices running versions of its own Exynos SoC, too.
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Clixxer replied on Wed, Apr 10 2013 6:52 PM

Honestly I think when Samsung raised the prices on Apple it has some sort of plan after their contract is up. I doubt they were expecting to get another contract with them and maybe Samsung is better for it. Their mobile department is growing like a wildfire and see no signs of slowing down. Maybe this way instead of building chips for Apple they can focus more on their own products and Nvidia. They may see profits dip in the short term but long term could make them an even better company not hitching their profits to how well Apple does. As already reported Foxconn is hitched to Apple to the tune of 60-70% and so is Apple doesn't so well then foxconn doesn't either. 

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And who didn't see this coming? Lol

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