Apple Signs Chip Manufacturing Deal With TSMC

The Wall Street Journal is reporting that Apple has signed a deal with Taiwan Semiconductor Manufacturing Co. (TSMC) to make the chips to be used in iPad’s and iPhone’s. Right now Apple is sourcing its chips from Samsung but with the legal battle going on between both tech giants, Apple wants to rely less on Samsung and diversify its list of suppliers.

TSMC made chips is expected to be in some Apple devices by 2014 despite company officials saying that the process has been beset by glitches preventing the chips from meeting Apple’s speed and power standards. As early as next year the Taiwanese company expects to manufacture the chips which will be using advanced “20 nanometer technology”, making them much smaller and more energy efficient than what is being used today.

Apple is the biggest customer of Samsung with the South Korean giant supplying most of the important components to Apple such as processors, memory, and screens. Both companies are fierce rivals in the mobile market and over the past two years have sued and countersued each other.

A decade ago when Samsung wasn’t into the smartphone business both companies were ideal partners. Samsung’s Galaxy models are eclipsing the iPhone in terms of sales right now and this is causing concern for Apple executives who voiced out that their dependence on Samsung limits their control of their devices.

via wsj

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