Is Apple Set to Replace Samsung With a New Chip Maker?

It's no secret that Apple (NASDAQ: AAPL  ) and Samsung don't get along these days. The two leaders in mobile computing butt heads in courts around the world as they compete head-to-head for market share and profits in the smartphone and tablet spaces.

Yet the two are tightly intertwined, as Samsung manufactures plenty of components for Apple's mobile devices.

Rumor has it that the two frenemies will put some distance between them. Taiwanese tech publication DigiTimes has long suggested that Apple's core chips might find a new home in massive chip foundry Taiwan Semiconductor Manufacturing (NYSE: TSM  ) -- and now the publications claims that it's a done deal.

According to DigiTimes' anonymous sources, Apple will farm out a small quantity of A-series processor orders to TSMC this summer, followed by a deluge of orders in 2014 and beyond. Assuming that the story holds up, what does this mean for investors in Samsung, Apple, and TSMC?

In the following video, Fool contributor Anders Bylund floats the most likely answer: not as much as the heavy rumor-mongering might make you think. Even for Taiwan Semi, a few million Apple chips are a drop in the bucket when the annual unit capacity is counted in the billions of finished chips.

It's incredible to think just how much of our digital and technological lives are almost entirely shaped and molded by just a handful of companies. Find out "Who Will Win the War Between the 5 Biggest Tech Stocks" in The Motley Fool's latest free report, which details the knock-down, drag-out battle being waged among the five kings of tech. Click here to keep reading.

Read/Post Comments (4) | Recommend This Article (2)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On June 30, 2013, at 9:37 PM, VegasSmitty wrote:

    Good. Samsung is getting out before Apple totally goes under.

  • Report this Comment On June 30, 2013, at 9:53 PM, Henry3Dogg wrote:

    " Even for Taiwan Semi, a few million Apple chips are a drop in the bucket when the annual unit capacity is counted in the billions of finished chips."

    A couple of hundred million is still a lot.

  • Report this Comment On June 30, 2013, at 10:39 PM, LS960 wrote:

    Makes sense, Apple's dependence on Samsung is unhealthy, especially with Apple designing their own CPU cores from ARM ISA now, there is more reason to change foundries away from their competitor. Same thing with DRAM...moving to Micron/Elpida is strategic.

  • Report this Comment On July 01, 2013, at 8:47 AM, Polaris01usa wrote:

    Another Motley Fool Apple article with the subject in the form of a question. I'm keeping track today.

Add your comment.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2517147, ~/Articles/ArticleHandler.aspx, 9/27/2016 1:16:47 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated Moments ago Sponsored by:
DOW 18,229.26 134.43 0.74%
S&P 500 2,160.01 13.91 0.65%
NASD 5,298.00 40.51 0.77%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/27/2016 1:01 PM
AAPL $112.87 Down -0.01 -0.01%
Apple CAPS Rating: ****
TSM $30.35 Up +0.51 +1.69%
Taiwan Semiconduct… CAPS Rating: ****