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
As the end of 2023 nears, now is a good opportunity to look back at some of the devices and accessories that Apple discontinued throughout the year. Apple products discontinued in 2023 include the iPhone 13 mini, 13-inch MacBook Pro, MagSafe Battery Pack, MagSafe Duo Charger, and leather accessories. Also check out our lists of Apple products discontinued in 2022 and 2021. iPhone Mini ...
Apple with iOS 17.1 and watchOS 10.1 introduced a new NameDrop feature that is designed to allow users to place Apple devices near one another to quickly exchange contact information. Sharing contact information is done with explicit user permission, but some news organizations and police departments have been spreading misinformation about how functions. As noted by The Washington Post,...
Apple will likely release iOS 17.1.2 this week, based on mounting evidence of the software in our website's analytics logs in recent days. As a minor update, iOS 17.1.2 should be focused on bug fixes, but it's unclear exactly which issues might be addressed. Some users have continued to experience Wi-Fi issues on iOS 17.1.1, so perhaps iOS 17.1.2 will include the same fix for Wi-Fi...
Cyber Week has taken the place of Black Friday, and you'll find some of the same deals still around for the next few days, although many from Black Friday have now expired. This includes dozens of record low prices on Apple products like AirPods, iPad, Apple Watch, MacBook, iPhone, and more. Note: MacRumors is an affiliate partner with some of these vendors. When you click a link and make a...
Black Friday 2023 has officially ended, but we're still tracking some of the best deals of the year on Apple products like AirPods, iPad, iPhone, MacBook, and many more. Note: MacRumors is an affiliate partner with some of these vendors. When you click a link and make a purchase, we may receive a small payment, which helps us keep the site running. Specifically, in this article we're...
Top Rated Comments