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Apple moving away from Samsung's chips, analysts say

The odd relationship between Apple and Samsung has taken a turn for the seriously frosty, according to analysts. Apple is becoming increasingly less dependent on the Korean company for the chips to power its mobile phones, our sister site CNET News reports.

We'd previously heard a rumour about Apple going to other chip suppliers, and now it looks like it's started the process. I guess winning a billion dollars from your partner in a lawsuit is bound to put a strain on any relationship.

"Apple is working with TSMC at 20 nanometers," said Gus Richard, a chip analyst at Piper Jaffray. He's referring to Taiwan Semiconductor Manufacturing Company's most advanced 20-nanometer manufacturing process.

Apple would have shifted allegiance already, if it were not for contractual obligations, according to another analyst. The unnamed source told CNET: "The Apple-Samsung relationship has deteriorated to such a poor point that they're just looking to fill contractual obligations, then make a change."

A report from Asia says Apple is moving to TSMC for quad-core chips, which is to the detriment of other TSMC clients. Richard said: "TSMC has allocated a disproportionate amount of resources to Apple. And has pushed out other [TSMC customers] in the process.

"They'll ramp down Samsung and ramp up TSMC. And some products will get some of one and some of the other."

According to Richard, Apple will send the design and requirements to TSMC early next year, with production kicking in by the end of 2013. It's far from a done deal, but the gears are very much in motion.

We heard last month Apple had reduced its chips order from Samsung. It could also have some of Samsung's devices banned from sale in the US, following the court case to end all court cases.

What do you think of the relationship between the two? Let me know in the comments below, or on Facebook page.

Comments 8

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leoevs44's avatar

leoevs44 13 October, 2012 11:48

About time too, apple always brag about being the best ect (yawn) but they always use other companies products and tech and for such a big american company they dont even make their own product, their made in asia, case closed...

Ruffus Stone's avatar

Ruffus Stone 13 October, 2012 16:18

@ leoevs44 - 90% of mass market electronic consumers goods are made in Asia, including those from dozens of American and European brands. I don't think Apple are any different in that regard.

Loadit's avatar

Loadit 13 October, 2012 17:04

More capacity for Android gear then so Android will soon be under cutting Apple even more.

CaptainPicard's avatar

CaptainPicard 13 October, 2012 18:59

Not surprising, but Apple turned away from Google Maps and that turned out to be a huge success!

anonymous's avatar

anonymous 14 October, 2012 09:11

Who cares. CrApple sits there bitching about other companies allegedly "copying" their technology when in fact they unashamedly use others' technology in their iPoos. Samsung should refuse to supply CrApple with any components whatsoever - that'd compromise CrApple's offering even more than it is already.

anonymous's avatar

anonymous 16 October, 2012 09:47

@CaptainPicard ,

huge success? you are kidding right?

anonymous's avatar

anonymous 16 October, 2012 16:54

@anon 09:47 its gotta be sarcky or hes stupid

CaptainPicard's avatar

CaptainPicard 16 October, 2012 18:22

Yes I was being sarcastic

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