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RUMOR: Apple inks deal with TSMC foundry for A5 processor; possible setback for Samsung

“Rumors are running rampant that Apple Inc. and Taiwan Semiconductor Manufacturing Co. Ltd. (TSMC) are expanding their foundry ties-a possible blow for Samsung Electronics Co. Ltd,” Mark LaPedus reports for EE Times.

“With little or no fanfare, Apple and TSMC have recently entered into a foundry relationship, sources said,” LaPedus reports. “As reported, TSMC will make the A5 dual-core processor on a foundry basis for Apple’s iPad 2. Apple will use TSMC’s 40-nm process for the A5, according to a source. ‘Apple will also work with TSMC on 28-nm’ processes, according to a source.”

“This could be seen as a setback for Samsung. Samsung is making the A4 processor on a foundry basis for Apple’s original iPad. Samsung is also making the processor for the iPhone,” LaPedus reports. “It’s unclear if Samsung will make the A5 for Apple. Apple itself designed the [A4 and A5 processors] for the iPhone. The processors are based on ARM’s technology.”

LaPedus reports, “Apple, according to the source, will use TSMC for three reasons: 1. Samsung competes with the iPhone and iPad; 2. TSMC has the highest yielding 40-nm process in the foundry world; and 3. TSMC has the most 40-nm capacity.”

Read more in the full article here.

MacDailyNews Take: What we wrote on December 29, 2010:

What’s amazing is that Apple pumps billions into Samsung and then Samsung turns around and makes knockoffs of Apple products. How much longer is Steve Jobs going to help bankroll ripoffs of Apple products based on a ripoff OS over which his company is suing several others?

Something doesn’t compute. It’d be as if the U.S. Army were buying their guns and ammo from Al-Qaeda in Afghanistan today.

Apple’s sitting on $51+ billion in cash. They ought to build their own foundries and display production lines or at least find somebody with a conscience to work with who isn’t stabbing them in the back daily. In fact, they should’ve done it already.

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