The Korea Times is reporting that Apple (AAPL 0.86%) 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 (LPL -5.30%). The A7 business is reportedly going to Taiwan Semiconductor Manufacturing (TSM -3.18%) 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 (NVDA -2.68%) to mitigate the risk of losing some Apple business.

In the video below, Fool contributor Evan Niu, CFA, explains what it means for investors.