Samsung to Use GlobalFoundries Facility as Backup for Apple's A-Series Chip Production
Yesterday, a report from The Times Union claimed that Apple would begin A-series chip production at an upstate New York factory belonging to semiconductor company GlobalFoundries, with the Albany newspaper's sources also stating that Samsung would be helping to set up the facility.
AllThingsD now shares a bit more information on the arrangement, noting that Samsung will remain the primary manufacturer of Apple's A-series chips, with a GlobalFoundries facility to be used as a secondary factory on an "as needed" basis when Samsung's Austin, Texas facilities are unable to meet demand from both Apple and Samsung's own handset division.
Sources close to the situation said the deal that appears to be taking shape looks more like this: Samsung will use GlobalFoundries for what is known as “flex capacity.” This is a long-standing industry practice under which a chip manufacturer pays to occasionally use another company’s factories when demand on their own factory is running higher than they would like, and they need a little help.
...That’s where GlobalFoundries will come in, picking up the additional work on an as-needed basis. Samsung would basically hire GlobalFoundries as a subcontractor, and continue to manage the relationship with Apple. This is a very different business relationship than, say, if Apple were to tap GlobalFoundries as a “second source” for chips. Apple would of course have to give its blessing to the arrangement.
Samsung has long been the sole supplier of Apple's A-series chips, but Apple has been trying recently to move away from its rival for component supplies. Earlier this year, it was reported that Apple had struck a deal with Taiwan Semiconductor Manufacturing Company (TSMC) to begin producing A-series chips, but Samsung appeared to be remaining involved as a supplier in Apple's roadmap for future chips. Samsung's move to use a GlobalFoundries facility to help produce Apple's A-series chips would appear to indicate that Apple and Samsung are indeed committed to partnering on future production.
Popular Stories
Apple's iPhone 17 Pro and iPhone 17 Pro Max models will feature a number of significant display, thermal, and battery improvements, according to new late-stage rumors.
According to the Weibo leaker known as "Instant Digital," the iPhone 17 Pro models will feature displays with higher brightness, making it more suitable for use in direct sunlight for prolonged periods. The iPhone 16 Pro and...
Apple will be holding its annual iPhone event on Tuesday, September 9, to unveil the iPhone 17, iPhone 17 Air, iPhone 17 Pro, and iPhone 17 Pro Max.
Assuming that Apple sticks to its familiar pattern, the iPhone 17 series should be available to pre-order starting Friday, September 12 at 5 a.m. Pacific Time / 8 a.m. Eastern Time. The release date for the devices should be one week later, on Fr...
We're only days away from Apple's "Awe dropping" fall event scheduled to take place on Tuesday, September 9 – and along with the new iPhone 17 series, we're going to get a new version of the Apple Watch Ultra for the first time since 2023.
By the time the Ultra 3 is unveiled, it will have been two years since the previous model arrived. The intervening period has left plenty of room for...
Apple is set to unveil the iPhone 17 series in just four days from now, and the biggest design mystery surrounding the Pro models has finally been solved.
In a report outlining his expectations for Apple's event next week, Bloomberg's Mark Gurman said the iPhone 17 Pro models will have "a new cutout area on the bottom two-thirds of the phone that doubles as the wireless charging area."...
iOS 26 introduces an Adaptive Power Mode on the iPhone, alongside the existing Low Power Mode.
Apple says Adaptive Power Mode can make "performance adjustments" when necessary to extend an iPhone's battery life, including slightly lowering the display brightness, allowing some activities to "take longer," and automatically turning on Low Power Mode when the iPhone's remaining battery life...
Just one week before Apple is expected to unveil the iPhone 17 series, an analyst has shared new price estimates for the devices.
Here are J.P. Morgan analyst Samik Chatterjee's price estimates for the iPhone 17 series in the United States, according to 9to5Mac:
Model
Starting Price
Model
Starting Price
Change
iPhone 16
$799
iPhone 17
...