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.

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  • 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.

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