Samsung to use GlobalFoundries for ‘flex capacity,’ sources say

“Don’t get too excited about an intriguing story from the Albany Times Union saying that chip-manufacturing company GlobalFoundries may soon start turning out chips for Apple’s iPhones and iPads at a factory in upstate New York,” Arik Hesseldahl reports for AllThingsD.

“I’ve been checking with industry sources who have a pretty clear picture about what may be going on. And it’s probably not all that it’s initially cracked up to be,” Hesseldahl reports. “In the most likely scenario, Samsung will still be the primary manufacturer of Apple’s chips for the iPhone and iPad, they said, continuing the role it has played since the earliest days of the iPhone: Building the chips that Apple designs under contract.”

“Sources close to the situation said the deal that appears to be taking shape looks more like this: Samsung will use GlobalFoundries for what is known as ‘flex capacity,'” Hesseldahl reports. “This is a long-standing industry practice under which a chip manufacturer pays to occasionally use another company’s factories when demand on their own factory is running higher than they would like, and they need a little help.”

Read more in the full article here.

Related articles:
GlobalFoundries to produce Apple A-series chips in Upstate New York fab – November 11, 2013
Apple exploring U.S.-based chipmaking deal with GlobalFoundries – July 13, 2013
Apple rumors bloom near Malta, NY: New speculation centers on GlobalFoundries as Cupertino’s chip maker – December 14, 2012
GlobalFoundries marks third anniversary by achieving full independence from AMD – March 5, 2012


    1. Do you realize that Apple has never stated once they want to cut off Samsung as a supplier? The only people saying that are the die hard Apple and anti Samsung zealots who visit Apple news sites like MDN and others.

  1. Who exactly do people expect Apple to replace Samsung with? From what I’ve read, for a lot of stuff they offer the capacity/technology/price that others don’t. It’s not as if there are hundreds of companies ready to roll with the things Apple needs. Apple are obviously diversifying their suppliers, but Samsung are big for a reason.

    1. Apple may not be able to replace Samsung today, but Apple should be looking replace Samsung and TSMC within three years with their own CPU/LCD fab plants on shore, there is no excuse Apple has the money, Apple needs to focus and execute.

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