Apple's chip deal with TSMC could hasten messy Samsung divorce
29th Jun 2013 | 15:49
Complicated relationship nearing an end?
Apple has signed an agreement with Taiwanese semiconductor company TSMC to build mobile processors for its iOS devices, the Wall Street Journal has reported.
The rival chip-maker will eventually take over from Samsung as Apple's key supplier, eventually phasing out a business relationship destroyed by endless patent infringement lawsuits between the two.
The report claimed TSMC will begin building chips in 2014, although Samsung will continue to be the primary supplier for that year and perhaps beyond.
Apple and TSMC had been in talks since 2010, the report said, but were finally able to agree a deal after the latter resolved "glitches preventing the chips from meeting Apple's speed and power standards."
End of an era?
The procurement of a new chip supplier could be the final piece in the puzzle for Apple as it seeks to lessen its reliance on Samsung as a component manufacturer.
It no longer buys the displays for iOS devices from Samsung and has been spreading the wealth by finding other firms to manufacturer RAM and flash memory for iPhones and iPads.
Apple and Samsung had done great business together for many years before Samsung emerged as a genuine contender to the iPhones dominance with its Galaxy smartphone range.
Apple strongly alleged that Samsung got its leg-up by "blatantly copying" its own devices, leading to countless suits and counter suits around the world.
Although they make plenty of money together, it seems neither is too keen on lining the other's pockets regardless of how mutual beneficial the business relationship has been.
Via The Verge