Apple may end reliance on Samsung chips, as relationship 'deteriorates'
14th Oct 2012 | 04:18
Apple turning to Taiwanese chip maker, say reports.
Apple has established a relationship with the Taiwanese Semiconductor Manufacturing Company who will build chips using its advanced 20 nanometer manufacturing process, according to reports in Asia.
TSMC's 20nm manufacturing process is said to yield chips that are 30 per cent faster and 25 per cent more efficient than the 28nm tech it currently uses.
Ramping down Samsung
Piper Jaffray chip analyst Gus Richard had heard a similar tale and said Apple will turn to TSMC and lessen the amount of 32 nanometer Samsung-built A6 chips for devices like the iPhone 5.
Richard said: "They'll ramp down Samsung and ramp up TSMC. And some products will get some of one and some of the other.
"TSMC has allocated a disproportionate amount of resources to Apple. And has pushed out other [TSMC customers] in the process," he added.
Fulfilling contractual obligations
Apple's reported efforts to marginalise Samsung comes following a long courtroom battle, which has left extremely bitter feelings on both sides of the Pacific Ocean.
One industry source told CNET that the relationship between the two companies has effectively broken down and will result in the two companies parting ways at the end of existing agreements.
The source said: "The Apple-Samsung relationship has deteriorated to such a poor point that they're just looking to fill contractual obligations, then make a change."
Apple and Samsung have helped each other earn billions in the past few years, but it seems that elongated period of dragging each other's names through the mud may bring that mutually beneficial arrangement to a close.