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
125 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
125 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
125 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
125 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
125 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
125 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)

Popular Stories

Apple Silicon Teal Feature

The Next Big Apple Silicon Device May Not Be a Mac or iPad

Wednesday February 1, 2023 3:57 am PST by
Apple's next device with an Apple silicon chip may not be a Mac or an iPad, but rather an advanced external display, according to recent reports. The display, which is rumored to arrive this year, is expected to sit somewhere between the $1,599 Studio Display and the $4,999 Pro Display XDR – but more exact information about the device's positioning and price point is as yet unknown. While ...
General iOS 16 Feature Yellow

Five New iOS Features Coming to Your iPhone Later This Year

Tuesday January 31, 2023 11:58 am PST by
Apple has previously announced several upcoming iOS features that are expected to be added to the iPhone this year. Some of the features could be introduced with iOS 16.4, which should enter beta testing soon, while others will arrive later in the year. Below, we have recapped five new iOS features that are expected to launch in 2023, such as an Apple Pay Later financing option for purchases ...
HomePod 2 White and Midnight Feature Purple Blue

Apple Explains Why HomePod Was Released Again, Wi-Fi 4 Limitation, and More

Thursday February 2, 2023 7:57 am PST by
Apple's VP of hardware engineering Matthew Costello and product marketing employee Alice Chan recently spoke with Men's Journal and TechCrunch about the new second-generation HomePod in wide-ranging interviews about the smart speaker. Apple discontinued the original full-size HomePod in March 2021 after multiple reports indicated that sales of the speaker were lackluster, but Chan told Men's ...
iOS 16

Apple Preparing iOS 16.3.1 Update for iPhone as Wait for iOS 16.4 Beta Continues

Thursday February 2, 2023 6:41 am PST by
Apple appears to be preparing an iOS 16.3.1 update for the iPhone, based on evidence of the software in our website's analytics logs this week. It's unclear when the update will be released, but it will likely be available at some point in February. The same logs have accurately foreshadowed the release of several previous updates, including iOS 16.0.3 and iOS 16.1.1 most recently, so they...
dewey airtag

Report Highlights Danger of Using AirTags for Tracking Dogs

Monday January 30, 2023 1:45 pm PST by
AirTags may be a convenient way for tracking dogs that might get off leash or otherwise lost, but there are dangers associated with the practice, as outlined by a report from The Wall Street Journal. At 1.26 inches in diameter, AirTags are able to fit easily on a dog's collar, but that size also makes the tracking devices small enough to swallow, at least for a medium to large-sized dog, and ...
MKBHD HomePod 2 White Ring Stain

New HomePod Can Still Stain Some Wooden Surfaces

Tuesday January 31, 2023 8:29 am PST by
When the original HomePod launched in 2018, it was discovered that the speaker can leave white rings on some wooden surfaces. Now, well-known YouTuber Marques Brownlee has confirmed that the issue persists to a lesser extent with the new HomePod. In a side-by-side test, he showed that the white second-generation HomePod left a white ring on the wooden surface that he placed the speaker on,...
Multi Display CarPlay 1

Apple Launching All-New CarPlay Experience Later This Year With These 5 Features

Sunday January 29, 2023 10:15 am PST by
In June 2022, Apple previewed the next generation of CarPlay, promising deeper integration with vehicle functions like A/C and FM radio, support for multiple displays across the dashboard, personalization options, and more. Apple says the first vehicles with support for the next-generation CarPlay experience will be announced in late 2023, with committed automakers including Acura, Audi,...
iOS 16

When Will the iOS 16.4 Beta Be Released?

Wednesday February 1, 2023 11:09 am PST by
It's been more than a week since Apple released the iOS 16.3 update, and typically, new iOS betas follow launches within a day or so. We were expecting Apple to provide the first beta iOS 16.4 on Monday, Tuesday or Wednesday of this week, but that hasn't happened. Tuesdays are the days that we most often see betas, though Monday and Wednesday happen now and then, and most often betas come...