Knowing how much is at stake, things can get pretty vicious when you’re a manufacturer with a shot at providing Apple with vital components for its next generation iPhone.
We’ve known for some time that Taiwan Semiconductor Manufacturing Co. and Samsung have been battling it out over who gets picked by Apple to make its forthcoming A9 processors — with Samsung apparently having the advantage currently, due to offering Apple a better deal financially.
TSMC isn’t taking this lying down, however. In fact, the company is currently suing an ex-employee who allegedly leaked R&D secrets to Samsung; thereby allowing it to both catch up in the chip fabrication business.
Although Samsung isn’t being directly sued, there’s no doubt who TSMC is blaming, either.
“We brought the lawsuit because TSMC Chairman Morris Chang and senior management were convinced we needed to send a message to Samsung, employees and other competitors,” the former chief counsel for TSMC told EE Times. Apparently the initial technology that was “borrowed” related to 28-nanometer chip technology, spearheaded by TSMC. Samsung hasn’t made a public comment on the lawsuit, since it is not specifically being targeted by any of the complaints.
Should the suit amount to anything, however, it does raise the question of whether Apple will continue to stick by long-time frenemy Samsung. Apple knows better than anyone that Samsung is content to steal concepts and technology, and use this to gain an advantage competitive advantage — figuring that it is more cost-effective to do this and then pay damages, rather than miss the boat altogether.
While there’s an obvious benefit to seizing the cheapest deal it can find for chips, should Apple really continue to prop up a rival that is short on actual invention? Particularly coming at a time when Samsung’s mobile business is on wobbly legs, and profits are being kept up by chip manufacturing.
Personally speaking, I’d love to see Apple land a knockout blow in favor of the innovation I believe Apple stands for as a brand. But will Tim Cook feel the same way?
Luke Dormehl is a U.K.-based journalist and author, with a background working in documentary film for Channel 4 and the BBC. He is the author of The Apple Revolution and The Formula: How Algorithms Solve All Our Problems … and Create More, both published by Penguin/Random House. His tech writing has also appeared in Wired, Fast Company, Techmeme and other publications.
8 responses to “Ex-TSMC employee sued for spilling chip secrets to Samsung”
I don’t understand why Apple is bailing Samsung mobile from bankruptcy.
@alex5723:disqus : are you saying Apple is paying Samsung for copying their phablet idea?
and since when size is an innovation? please don’t use that ancient steve jobs’ flip-flopping argument. it doesn’t matter if you’re the first one, it only matters if you’re the best one.
@abc : doesn’t matter whether you think it’s an innovation or not. Apple having derided it as “hummer” just years before now quickly followed Samsung’s lead after seeing Samsung’s success with phablets.
This is certainly not far fetched as @alex5723 comment that Apple is bailing out Samsung mobile.
All I gotta say is 93% of smartphone profits last quarter!!! Samsung is a big time thief. They have been rightfully sued for everything, even vacuum cleaners. Apple is the only thing keeping Samsung mobile alive with this chip business.
@disqus_yIKDFhusSg:disqus : Sure, when you become as big as Samsung in product offering or revenue, you tend to attract lawsuits, even when Samsung is the second largest patent recipient in the US. Apple is ironically by far the most accused / named defendant in IP lawsuit around the globe. Imagine all the IP theft going on in Apple’s R&D dept (ahem).
Now, Dyson’s in question in the lawsuit was invalidated (ie, prior art) and was dismissed summarily. Dyson is now being sued by Samsung for defamation. Second, Samsung Semi’s revenue / profit never exceeded 5% of Samsung’s annual revenue. In fact, Samsung Semi’s revenue/profit went up last quarter without Apple. The most recent flagships iPhone 6/6Plus hardly contain any part made by Samsung, yet their semi is doing fantastically.
doesn’t seem to explain how Samsung 14nm got ahead of TSMC’s 16nm by almost a year — even if this guy indeed stole everything from TSMC.
Obviously Samsung is only capable of stealing so they must have just stolen technology and done it quicker and when Apple borrows technology from Samsung they should be thanked for making the technology better!!!!
By the way, anyone who doesn’t realize this is a sarcastic comment might need to seek professional help