Apple Reportedly Buys Into a Chip Fab, Looking to Produce Its Own Chips

a6xSemiAccurate reports that Apple is ramping up its efforts to control its own supply chain, seeking to produce its own chips and buying into a chip fabrication facility to accomplish that goal.

Apple has just done something that SemiAccurate has been expecting for months and entered the fab industry. No we are not joking, Apple just bought into a fab, and not in a trivial way either.

With the majority of the report behind a paywall, details remain scarce, but the teaser walks through how Intel, TSMC, Global Foundries, and IBM are unable to entirely meet Apple's chip needs as it looks to move away from Samsung as the manufacturer of A-series chips for its iOS devices.

Tags associated with the article include all of those companies, as well as "UMC", which undoubtedly refers to United Microelectronics Corporation, a Taiwanese semiconductor company with a focus on the foundry business, hinting that UMC may be involved in Apple's effort in some manner. UMC currently operates a number of fabs in Taiwan, and also has a facility in Singapore that the company just weeks ago designated as its Center of Excellence for advanced specialty process technologies.

Any move by Apple to produce its own chips is almost certainly years in the future given the difficulty of building up that expertise, and so Apple will need to continue relying on manufacturing partners for its A-series chips for the foreseeable future. Just last month, TSMC reportedly confirmed that it has struck a deal to produce A-series chips for Apple, offering the iOS device maker a path to minimize its reliance on Samsung. The TSMC deal comes after years of rumors as TSMC suffered from technical glitches and other issues that kept Apple from committing to the chipmaker.

SemiAccurate has a mixed track record, having correctly predicted Apple's shifts in graphics chip suppliers for its Mac lines several times, but also incorrectly claiming in May 2011 that Apple would soon be moving its Macs to ARM processors. More recently, the site has been keeping on top of Apple's work to recruit AMD engineers for its "Orlando GPU Design Center".

Update: CNET says that the report cites Globalfoundries as Apple's partner in the fab project. CNET's own sources indicate that the two companies are still "kicking the tires" and that no deal has been yet been reached.

"This isn't the first time. [Apple and Globalfoundries] have kicked the tires before. But [Apple] is doing this again to look at a fab to offset risk," said the source.

The source continued: "Globalfoundries and Samsung have the same technology foundation based on an IBM joint development agreement. So that gives [a possible deal] a little less risk if they're looking at a secondary option to offset [the current chip manufacturing] with Samsung. Samsung's fab in Austin and GF's fab in New York could both ramp a similar product and GF could offset capacity that Samsung can't fulfill."

Top Rated Comments

jimsowden Avatar
100 months ago
What is this macrumors, a freshman psych paper? Buy the report if you're going to quote all of its pertinent information.
Score: 25 Votes (Like | Disagree)
cgk.emu Avatar
100 months ago
So much for innovating. Apple just buys out start up places and rebrands it.

How much innovation can they really do in regards to chips?? That's not really their business. Also, how many other companies out there buy technology and use it as their own? Tons, in fact, they all do. Why? Because it's cost effective, it just makes sense.

----------

because this Macrumors user is going to work for you in the future :)

Well...you don't lack for confidence.
Score: 18 Votes (Like | Disagree)
StrongArmmed Avatar
100 months ago
Excellent move by Apple to become more vertically-integrated.

If they can fairly rapidly acquire the human expertise required, this may be a transformative moment for the Shiny Fruit Gang.

Removing Samsung from the supply chain is critical for Apple, as you can be sure there was no "firewall" between divisions of that company and some of Apple's valuable business knowledge shared with the chip fab, display, and memory divisions of Samsung "found it's way" to the mobile device group...
Score: 16 Votes (Like | Disagree)
ghettochris Avatar
100 months ago
With the majority of the report behind a paywall

WTF, you have one job MacRumors. Take some of that ad revenue and conquer the paywall instead of leaving us hanging until someone in the forums coughs some hard earned cash to do it themselves.
Score: 14 Votes (Like | Disagree)
Klae17 Avatar
100 months ago
So much for innovating. Apple just buys out start up places and rebrands it.

You made your own car, eat your own grown and raised food, and you built your own house too, right? So much for innovating.
Score: 13 Votes (Like | Disagree)
theBB Avatar
100 months ago
SemiAccurate has a mixed track record [...]
Well, with a name like that, it does not seem like they were aiming to be *very accurate* in the first place. :)
Score: 12 Votes (Like | Disagree)

Top Stories

bloodoxygenapplewatch

Apple Watch Series 7 to Gain Breakthrough New Health Feature

Friday March 5, 2021 5:34 am PST by
Apple is reportedly planning to bring a new, first-of-its-kind health technology to the Apple Watch Series 7, in what could be a breakthrough for managing conditions such as diabetes more easily. According to a recent report from ETNews, the Apple Watch Series 7 will feature blood glucose monitoring via a non-invasive optical sensor. Measuring blood glucose levels, also known as blood...
apple transfer google photos 1

Apple Launches Service for Transferring iCloud Photos and Videos to Google Photos

Wednesday March 3, 2021 12:04 pm PST by
Apple this week introduced a new service that's designed to make it quick and easy for iCloud users to transfer their stored photos and videos to Google Photos. As outlined in an Apple support document, you can go to Apple's privacy website and sign in to see the "Transfer a copy of your data" option. If you select this and go through all the steps, Apple will transfer your iCloud photos and ...
imac pro featured black

Apple Confirms iMac Pro Will Be Discontinued When Supplies Run Out, Recommends 27-Inch iMac

Saturday March 6, 2021 7:33 am PST by
Apple on late Friday evening added a "while supplies last" notice to its iMac Pro product page worldwide, and removed all upgrade options for the computer, leaving only the standard configuration available to order for now. We've since confirmed with Apple that when supplies run out, the iMac Pro will no longer be available whatsoever. Apple says the latest 27-inch iMac introduced in August...
Oled iPads and MackBook Pro

OLED 10.9-Inch iPad Rumored for Early 2022, 12.9-Inch iPad Pro and 16-Inch MacBook Pro Could Follow

Thursday March 4, 2021 8:37 pm PST by
Earlier today, DigiTimes shared a preview of an upcoming report claiming that Apple is working on both iPad and Mac notebook models with OLED displays that could launch starting in 2022. The full report from DigiTimes is now available, and it includes several new alleged details about Apple's plans. According to the report, the first of these devices to adopt an OLED display is likely to be...
apple products refurbished store banner

Class Action Lawsuit Over Apple Providing Refurbished Replacement Devices Proceeding to Trial in August

Friday March 5, 2021 9:53 am PST by
Initially filed in 2016, a class action lawsuit that accuses Apple of violating the Magnusson-Moss Warranty Act, Song-Beverly Consumer Warranty Act, and other U.S. laws by providing customers with refurbished replacement devices is set to proceed to trial August 16, according to a notice this week from law firm Hagens Berman Sobol Shapiro LLP. Apple's repair terms and conditions state that,...
iPhone 13 Notch Feature2

iPhone 13 Rumor Recap: Smaller Notch, Larger Batteries, 120Hz for Pro Models, Improved 5G, Wi-Fi 6E, and More

Friday March 5, 2021 8:20 am PST by
While we are likely at least six months away from Apple unveiling the so-called iPhone 13 lineup, rumors about the devices are starting to accumulate, so we've put together this recap of everything that is expected so far. The upcoming iPhone 13 lineup will consist of the same four models and the same screen sizes as the iPhone 12 lineup, according to reputable analyst Ming-Chi Kuo,...
maxresdefault

What's on Your iPhone Home Screen?

Thursday March 4, 2021 10:31 am PST by
Over on our YouTube channel, MacRumors videographer Dan has a new video up where he shares his Home Screen, wallpaper, and all of his current favorite widgets. Subscribe to the MacRumors YouTube channel for more videos. Check out Dan's video to see his setup, and then comment below and show us your own Home Screens. It's always fun to see other peoples' Home Screens, and with widgets and...
OLED iPad Pro and MacBook Pro

iPad and MacBook Models With OLED Displays Rumored to Launch in 2022

Thursday March 4, 2021 8:19 am PST by
Apple plans to release new iPad and MacBook models with OLED displays in 2022, according to industry sources cited by Taiwanese supply chain publication DigiTimes. The information was shared in the site's paywalled "Before Going to Press" section, so there are no further details yet, but the full report should be released by tomorrow. Apple has gradually increased its adoption of OLED...
Top Stories 48

Top Stories: iPhone 13 Leaks, OLED iPads and Macs, New AirTags Evidence

Saturday March 6, 2021 6:00 am PST by
iPhone rumors are heating up, with noted analyst Ming-Chi Kuo this week releasing a wide-ranging report outlining his expectations for the iPhone lineup over the next three years. This week also saw rumors about OLED displays potentially coming to iPad and Mac starting next year, increasing signs of AirTags functionality in iOS 14.5 betas, and more, so check out all of the details below! i...
imac pro while supplies last

iMac Pro No Longer Custom Configurable, Available 'While Supplies Last'

Friday March 5, 2021 10:14 pm PST by
Apple appears to be on the verge of discontinuing the iMac Pro, with the store page for the high-end all-in-one Mac including a "While supplies last" tagline and only the base model with no custom configurations available for purchase. The iMac Pro launched in December 2017, and while there have been a few tweaks to the available configurations over the years, it has received no substantial...