Apple Starts Taking A-Series Chip Production Away From Samsung

Apple Starts Taking A-Series Chip Production Away From Samsung

This could be the first ripple of a very big wave: the Commercial Times out of Taiwan is claiming that Taiwan Semiconductor Manufacturing (or TSMC) is about to start trial production for Apple’s A6X SoC this quarter.

Why is this a big deal? Apple’s arch-nemesis Samsung currently manufacturers the A6X chip… and it might herald Apple shifting all of its multi-billion dollar chip business away.

The Commercial Times reports:

The Taiwanese company has been contracted to manufacture the A6X chip, which drives Apple’s iPad4 tablet, with trial production set for the first quarter of this year, Taiwan’s Commercial Times reported.

The move is the latest in a strings of efforts by Apple to switch mass manufacturing contracts away from Samsung, it said.

There have been a lot of rumblings lately about Apple switching from Samsung to TSMC for chip production, including the rumor that Apple and TSMC are building a $10 billion chip fab in the United States, either in New York or Oregon.

If Apple did shift all chip production for its mobile devices away from Samsung, it would be a huge blow to Apple’s “frenemy” arch-rival. Making chips for iOS devices is a multi-billion dollar business, and even a company as big as Samsung would have to feel that.

  • technochick

    While I dont doubt that Apple might add some variety to their sources, this sounds more like someone is trying to pump TSMC stock value.

  • site7000

    As Apple shifts their CPU orders (not to mention display orders) away from Samsung and starts giving billions of dollars to Samsung’s competitor’s to get their factories built, it will show this whole iPhone-copying fiasco was one of the biggest business miscalculations of all time. It’s already been demonstrated that marketing costs are wiping out any profits Samsung was hoping to make in the phone business. It’s also obvious that the self-defeating emotion in this fight is mainly coming from the head of Samsung (e.g. “we will never license anything from Apple.”) If Apple starts shifting manufacturing to the US, it would just be icing on the cake. Be patriotic, buy Apple!

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John BrownleeJohn Brownlee is a Contributing Editor. He has also written for Wired, Playboy, Boing Boing, Popular Mechanics, VentureBeat, and Gizmodo. He lives in Boston with his wife and two parakeets. You can follow him here on Twitter.

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