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.
In the video below, Fool contributor Evan Niu, CFA, explains what it means for investors.
Fool contributor Evan Niu, CFA owns shares of Apple. The Motley Fool recommends Apple and NVIDIA. The Motley Fool owns shares of Apple. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.