Apple Cuts Samsung Out

The Korea Times is reporting that Apple  (NASDAQ: AAPL  ) has cut Samsung out of producing its next-generation A7 chip. The Mac maker continues to diversify its component supplier base away from Samsung. Apple has already begun moving display sourcing to LG Display  (NYSE: LPL  ) . The A7 business is reportedly going to Taiwan Semiconductor Manufacturing  (NYSE: TSM  ) and its 20-nanometer process. The transition could hurt Samsung, since it would be left with excess unused. Samsung has supposedly been trying to grow its business with NVIDIA  (NASDAQ: NVDA  ) to mitigate the risk of losing some Apple business.

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  • Report this Comment On April 14, 2013, at 1:40 AM, beachnyc wrote:

    This is a horrible article with baseless facts..... First of all Qualcomm had be begging Samsung to build capacity and Samsung as said "no thanks." If any research had been done this would have easily be noticed.

    Qualcomm demand will fill in any lost that apple move to TSMC will bring. There is a major capacity problem in wafers and Samdsung will have no problem filling in this gap......

  • Report this Comment On April 14, 2013, at 3:52 PM, shm224 wrote:

    Firstly, companies like Apple and Samsung usually plan fab capacities at least one or two full years in advance. Samsung isn't all of sudden going to end up with "empty" fabs sitting idly -- especially given Samsung's own growing demand for AP's. It likewise takes at least a couple of years to build / upgrade / migrate fabs -- despite all the brouhaha, Apple will have to depend on Samsung for the Ax production for some foreseeable future.

    Then, it still remains to be seen if TSMC will be able to meet new challenges. TSMC's major customers like Qualcomm and nVidia have long been complaining about TSMC's low yield ; Qualcomm turned to Samsung Austin fabs due to manufacturing/yield problems at TSMC last year. There are similar rumors about nVidia as well. TSMC likewise doesn't want to bet their entire farm on Apple either.

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