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Chip manufacturing company TSMC started shipping processors to Apple in Q2 2014, reports the Wall Street Journal. After exclusively sourcing its processors from Samsung, Apple last year struck a deal with TSMC that would see the manufacturer begin supplying A-series chips for Apple's iOS devices.
Apple's deal with TSMC is a win-win situation for both companies with Apple reducing its reliance on Samsung for iOS device components and TSMC receiving a boost financially from Apple's hardware orders.
The development means Apple doesn't have to rely solely on Samsung for microprocessors, a critical component that controls applications running in smartphones and tablets. By securing an additional supplier, Apple will have more leverage when it comes to price negotiations with its chip suppliers in the future. Through the deal, TSMC adds a high-profile customer that could help support expensive research investments the manufacturer needs to move to advanced technology and will likely boost its overall revenue this year, analysts said.
In line with previous reports, TSMC allegedly began mass producing chips for Apple using its 20-nanometer process earlier this year and is working with the company on future 16-nanometer designs. Apple also is rumored to be working with Samsung on next year's A9 processor which could use a 14-nanometer design.
Top Rated Comments
Wanting Apple to succeed is great. Wanting Samsung to fail is childish.
it would be worth it only to see these spectacularly inane ads be halted
maybe this will stop people from calling me stupid because i have an iphone and their samsung is so much better, after all who knows how much such marketing actually alienates people in the end
It is awesome news because samsung is getting behind (still in 28?), Intel is having lots of trouble with going 14 nm.
So TSMC is by far the best option, 20 nm is going to be the most viable option for a long time. Of course, Samsung electronics seeing a 30 % YoY profit decline, 3rd quarter in a row of decline in profits, and blaming most of it on Samsung Mobile (smartphones, tablets, computers) is good, but it's time to take a dig at those manufacturing plants too.
God, a big screen iPhone (2 models) and suddenly looks like Samsung Mobile, maybe even Samsung Eletronics in itself will feel a lot of pain in the next 2 years. "How to go from 9 billion $ in a quarter to 2 billion $ in a year."
Great. Less stupid Galaxy ads.
Unfortunately, for companies that I admire (for various reasons), Samsung must fail in order for them to succeed. I agree that it shouldn't be a reason in Apple's case, but it is what it is.
Then, there's the whole corruption thing, bad products and lack of support. For that, I want Samsung to be knocked down nicely.
I am not aware of CPUs that aren't designed by a US company. Apple (an American company) designs the A series SOCs that are based on ARM (technically a European company, but the designs are all done here) designs. Many of the A-Series SOCs makes for Apple are actually made in US foundries.
Intel, NVIDIA, QualComm are all based in California.