Apple dumps Samsung from ‘A7’ chip development project

“The chasm between Samsung Electronics and Apple is expected to widen further as the U.S. electronics giant has excluded its Korean rival from a project to develop A7 application processors, due to be released in the first half of next year,” Kim Yoo-chul reports for The Korea Times.

“‘Apple is sharing confidential data for its next A7 system-on-chip (SoC) with the Taiwan Semiconductor Manufacturing Company (TSMC). TSMC has begun ordering its contractors to supply equipment to produce Apple’s next processors using a finer 20-nanometer level processing technology,’ said an executive at one of Samsung’s local partners in Korea by telephone, Wednesday,” Kim reports. “Amid sluggish demand for conventional chips hit by poor sales of personal computers, Apple’s orders were a big help in lifting Samsung’s semiconductor business.”

Kim reports, “‘Apple is cutting the use of Samsung displays for its products. Now the deterioration of ties has expanded to chips. You should remember that the application business is one of Samsung’s new growth engines in which the firm is heavily investing,’ said an official of another top-tier parts supplier to the Korean company… ‘If Samsung fails to win Apple orders for A7 chips, then some of Samsung’s system chip-manufacturing lines will be stopped. That’s a scenario Samsung really doesn’t want to see.'”

Read more in the full article here.

MacDailyNews Take: Too bad, convicted serial patent infringer, finally you reap what you’ve sown, soulless slavish copier.

Related articles:
‘Breakthrough Apple product’ looming? Imagination Technologies and TSMC strengthen technology collaboration – March 25, 2013
TSMC to fabricate Apple’s forthcoming A7 processor, sources say – March 14, 2013
Apple suppliers Hon Hai, TSMC to add 5,000 jobs each – March 11, 2013
TSMC CEO comments signal massive next-gen Apple A-series chip orders – January 19, 2013
Analyst: Apple to use TSMC’s new 16nm FinFET process for ‘breakthrough’ product – January 16, 2013
Apple moves A6X processor production from Samsung to TSMC; trials begin this quarter – January 2, 2013
Analyst: TSMC to be Apple’s sole 20nm quad-core processor supplier – October 12, 2012
Apple plots course to dump slavish copier Samsung from supply chain; looks to TSMC to stamp out processors – October 4, 2012


  1. Samsung reports lowered parts production on decreased Apple part orders, it SO obvious that Apple is doomed. iPhone and iPad orders are non-existant based on parts forecast from ex-Apple supplier SameDung

    1. Dark night, you left off the [/sarcasm] at the end of your post.
      Either that, or you posted a truly dumbassed comment, making a claim that Apple’s doomed because Samsung reports reduced parts orders, because Apple is taking its parts orders to a variety of alternative suppliers.
      I hope it was the former…

    1. You sound as though you think that changing chip suppliers is as easy as changing your socks. I believe that Apple is working full speed to cut Samsung’s nuts off. Next stop , partnering with Yahoo and doing the same to Google.

      1. It is a lot easier for Apple than most others because the bought P A Semiconductor and design and develop their own chips. One day, Apple will buy the chip manufacturing company too.

        So yes, Apple controls that part of their future.

    2. Apple had better use a processor that is at least as fast and as efficient as those made by Samsung. It would be a disaster to use a chip that had lower performance.

    1. That’s what I was thinking first day of the recent North Korea amping of hostilities. Some good COULD come out of this if they would only cripple Samsung’s manufacturing base (& the CEO’s office) and leave everything else alone. Just a thought, not necessarily a real wish.

  2. … of the “disappointing iPhone sales” reported earlier? Why would Reuters report sales of a product as “disappointing” unless someone WERE disappointed? As in … Samsung is disappointed that two of their profit lines have been seriously eroded!
    Thank you for being cl(e)ar, Mr. Kim.

  3. I love how these idiots at Samsung seem to be surprised that they are losing more and more of Apple’s business. What exactly did they really think was going to happen?

    Perhaps the saying “Don’t bite the hand that feeds you” isn’t used in South Korea?

    1. unfortunately you have no idea how big Samsung is. apple profit is only after 2007 iphone release. apple business depends on idevices sale not mac or anything. so if something would go wrong, apple will perish all of sudden. apple doesn’t have any alternate way to make money. however Samsung has many different sectors like construction, insurance, TV, auto industry, electronics, and so on. they have many resources to make money even something would fail. A7 chip development doesn’t affect on Samsung performance anyway. as a matter of fact, Apple doesn’t have any manufacture to produce mass of A7 in the future. they still depend on contract like Faxcon or something. this kind of way is always reached to limit. honestly Samsung is way big player to make processor or any part for mobile or PC in the world. as I said, their business is various. apple is not. who will win later? you will see. by the way I wonder why apple don’t release world market share on mac? they only release US only even I know it is always around 3-4% which is so pathetic. overprice piece of shit.

  4. Now Apple is going to put the pain on Samsung. Not with lawsuits but with cutting Samsung out of its business entirely.
    Samsung put themselves in this position by copying and then selling product that wasn’t there’s to sell. Now there will be no copying because they won’t see what Apple develops until after Apple has it out on the market.

  5. I know like many Apple fans I’ve grown impatient that Samsung is still as intertwined with iOS device production as it is today.

    But the day is steadily arriving when Apple will exact its full revenge. It just takes time to cook the sweetest, most delicious dishes.

    I always get a bit irritated when people say that Apple doesn’t play nice with its rivals. I call such B.S. on that. It worked hand in hand with Microsoft in the early days (then got screwed over). It worked closely with Google (screwed over) and it brought billions of dollars to Samsung (screwed over yet again).

    To me, Apple is the eccentric artist always used and scorned by its partners. Whether you’re a person or a company, that’s the sort of thing that sticks with you, becomes part of your DNA and motivates you to stick your middle finger at the world when you must.

    Apple is leaving Samsung, and it’s not going to forget its toothbrush on the way out.

  6. About a year ago I wrote to Apple’s investor relations department expressing my dismay as a shareholder that Apple was doing business with Samsung and urging them to cut the ties as soon as possible. I am glad to see that this is beginning to happen. Apart from bottom line business considerations, I don’t see how a company can hold its head up and respect its own integrity otherwise.

  7. Something does not add up.

    2010: A4
    2011: A5
    2012: A5X, A6, A6X
    2013: NOTHING
    2014: A7, A7X

    It’s more likely that 2013 will introduce an A7 variant and that 2014 will see the A8 — quite possibly a true 64-bit variant as about that time the iPads could need to crack the 4 GB RAM limit of a 32 bit implementation.

    1. Thanks for your contribution to the postings x. Really added a lot to my understanding of the situation.

      One recommendation — you might like to start your own blog. I’m sure you’d get lots of readers for your insightful thoughts.

  8. Great news! But, why do I worry that a Taiwanese company may not be any more trustworthy than a Korean company? It is past time that America starts making stuff again…not easy, I know, but we can do it!!!

  9. ‘If Samsung fails to win Apple orders for A7 chips, then some of Samsung’s system chip-manufacturing lines will be stopped. That’s a scenario Samsung really doesn’t want to see.’

    Samsung: You are soooo screwed, by your own choices. You get what you give, stupid, unimaginative parasites. 😛

      1. edward, you are remarkably articulate. I defer to your superior understanding of reality and respectful communication skills not.

        I’m an observer, analyst and predictor of system behavior. In this case, BFD if you think I’m correct or not. Let’s just sit back and watch karma eat Samsung alive. It’s going to be fun Fun FUN! 😀

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